Market regulator Sebi has granted a breather to companies by extending the expiration date for their IPO approvals. At present, the approvals given to IPOs are valid for a period of 12 months from the date of Sebi’s final “observation”. This has been extended by six months, subject to fulfilment of certain conditions. “The validity of the Sebi observations where the same have expired or will expire between March 1, 2020 and September 30, 2020 has been extended by six months, from the date of expiry of such observation,” Sebi said in a circular.

Further, the market regulator has allowed changes to the IPO structure. “The issuer shall be permitted to increase or decrease the fresh issue size by up to 50 per cent of the estimated issue size without requiring to file fresh draft offer document,” the Sebi said. However, Sebi has said there has to be no change in the objects of the issue. Also, the relaxation is only for issues that open before the end of the current calendar.

Industry players said the relaxations will help some issuers but the overall equity capital market activity this year will be hit due to the economic damage caused by Covid-19.