XYZ Ltd. is manufacturing Namkeen in Bikaner, Rajasthan. To expand its footprint on PAN India basis and to meet out its future capex plan, XYZ Ltd. floated an Initial Public Offer. It provided 4 days' time to make bids f

Period of Subscription Initial Public Offer Regulation 46(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 provides that an Initial Public Offer (IPO) shall be kept open for at least 3 working days and not more than 10 working days. Further, Regulation 46(3) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 stipulates that in case of force majeure, banking strike or similar unforeseen circumstances, the issuer may, for reasons to be recorded in writing, extend the bidding (issue) period disclosed in the red herring prospectus (in case of a book built issue) or the issue period disclosed in the prospectus (in case of a fixed price issue), for a minimum period of one working day subject to the provisions of regulation 46(1). Hence, total period shall not exceed 10 working days including extended period. In the given situation, XYZ Ltd. opened bid for 4 days and therefore, XYZ Ltd. can extend the time of bid for 2 more days. Period of subscription in case of Initial Public Offer by Small and Medium Enterprises (SME) Regulation 266(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 provides that a public issue shall be kept open for at least 3 working days and not more than 10 working days. Further, Regulation 266(3) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 stipulates that in case of force majeure, banking strike or similar unforeseen circumstances, the issuer may, for reasons to be recorded in writing, extend the bidding (issue) period disclosed in the red herring prospectus (in case of a book built issue) or the issue period disclosed in the prospectus (in case of a fixed price issue), for a minimum period of one working day subject to the provisions of regulation 266(1). Hence, total period shall not exceed 10 working days including extended period. In the given situation XYZ Ltd. opened bid for 4 days and therefore, XYZ Ltd. can extend the time of bid for 2 more days.