What is IPO Listing Time?

When a company goes from privately held to publicly traded on the stock exchange, it launches an IPO or initial public offering. After shares are successfully allotted to the investors, the IPO gets listed on stock exchanges like NSE and/or BSE. 

The IPO listing starts at 9 AM with a ceremony. Here’s what the trading session timeline looks like on a listing day. 

IPO Listing Timeline

IPO Listing Process in India

The IPO listing process in India involves several stages, as listed below. 

• Appointment of Key Intermediaries

To start the IPO listing process, the company appoints key intermediaries, including investment bankers, auditors, registrar, and legal advisors. 

They help them create a prospectus, assist in planning the IPO, set the price band, handle all necessary legal and compliance issues with the regulatory body, and manage the overall IPO process. 

• DRHP Filling

The company, with the help of all key intermediaries, prepares a DRHP (Draft Red Herring Prospectus) and files it to SEBI (Securities and Exchange Board of India) and stock exchanges. 

• Roadshows and Publicity Activities

Once the DRHP is filed, companies conduct roadshows, press releases, and advertising campaigns to promote the IPO.

• Approval from SEBI

SEBI reviews the DRHP and, if needed, requests clarification or changes. Once the DRHP is approved, it becomes the Red Herring Prospectus (RHP).

• Price Determination 

Further, the IPO pricing is determined from the two primary IPO pricing methods, i.e., fixed-price or book-building. 

In the fixed-price issue, the price is determined prior to the IPO. On the other hand, if the IPO is a book-build issue, the company invites bids from investors during the offer period, and the final price will be determined based on demand and investor participation. 

• Anchor Investor Bidding (for Book-Build IPOs)

Anchor investors are invited to bid one day before the IPO opens to the public. This helps gauge investor sentiment and build trust in the offering.

• RHP Submission 

Finally, the updated version of the DRHP, RHP, is submitted with all the latest details. 

• IPO Open for Public

The IPO opens for retail investors, QIBs, and Non-Institutional Investors (NIIs) for a defined period, usually 3-5 working days. 

• Allotment of Shares

After the IPO closes, the company and its lead managers finalise the allocation of shares to investors on a lottery basis. For investors who didn’t get an IPO allotment, the amount is refunded within 7 to 10 working days. 

• Listing of Shares

The company’s shares are listed on the respective stock exchanges (BSE and/or NSE) and will be available to the general public for trading. 

IPO Listing Price

After the Indicative Equilibrium price (IEP) fluctuations in the pre-market, the final price on which the IPO gets listed is known as the IPO listing price.
For those wondering what IEP is; it is the price at which maximum buy and sell orders match during the pre-market session of an IPO listing.

Determined by the market's demand and supply, IEP is calculated based on the limited orders placed. This price keeps changing as more orders are placed, modified, or cancelled. The final IEP at the end of this session becomes the IPO listing price. 

IPO Issue Price vs IPO Listing Price

Can I sell an IPO on Listing Day?

Yes, if you are a retail investor with an IPO allotment, you can sell the shares on the listing day after 10 AM. However, certain investors, such as promoters, anchor investors, etc, have a lock-in period during which they cannot sell their shares.