An Initial Public Offering (IPO) marks a major milestone for a company, turning it into a publicly traded entity. It also opens the door for investors to snag shares in the secondary market, creating a sense of urgency to invest in the best IPO quickly.
SEBI has reduced the new IPO listing timeline from T+6 days to T+3 days, effective December 1, 2023, allowing companies to raise capital quickly and providing investors faster access to share liquidity. This shift benefits companies and gives investors quicker access to trading opportunities. Let's break down at what time ipo gets listed and how it works on listing day.
On listing day, an IPO stock begins trading on the stock exchange, but the process differs slightly from regular trading days. Here’s how the timeline unfolds:
Session | Time | Description |
---|---|---|
Pre-open Trading Session | 9:00 AM – 9:45 AM | Investors can place, modify, or cancel buy/sell orders. Indicative Equilibrium Price is determined. |
Order Matching & Execution | 9:45 AM – 9:55 AM | The stock exchange pauses for 10 minutes after the pre-open session to finalise opening prices. Orders that match at this price get executed. Unmatched orders carry forward to the regular session. |
Buffer Period | 9:55 AM – 10:00 AM | A brief pause to transition smoothly into the main trading session. |
Regular Trading Session | 10:00 AM onwards | Full trading begins; IPO shares are freely tradable like any other stock. |
The IPO listing time is relevant to investors because:
1. The timing of the IPO listing is essential for investors, as it not only enables rapid trading of allotted shares but also facilitates price discovery based on early market sentiment.
2. The IPO's first few hours can be volatile, offering opportunities for fast returns and risks to active traders. Allottees achieve liquidity, enabling them to sell their potential shares.
Understanding IPO listing timelines helps you make timely, smarter investment decisions. Acting early can help you benefit from market sentiment and liquidity right from day one.
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Trading on the listing day commences at 10:00 AM IST, with the opening price determined by the orders received during the pre-open session (9:00 AM to 10:00 AM IST).
Yes, you can buy or sell IPO shares on the listing day after the IPO open time on the stock exchange.
You can sell your IPO shares starting at 10:00 AM IST when the market opens, after a pre-open session from 9:00 AM to 10:00 AM for price discovery.