IPO guides
How the process works, from SEBI's rules and the exchanges' circulars, each with its source. Rules, not tips.
- How IPO allotment works: retail, HNI and SME, and the draw of lots
How shares in an Indian IPO are allotted when an issue is oversubscribed: the draw of lots for retail and non-institutional investors, proportionate allotment for institutions, and the rules for SME issues.
हिन्दी में पढ़ें - The IPO timeline after bidding closes: allotment, refund, demat credit and listing (T+3)
What happens on each working day after an Indian IPO closes: allotment on T+1, refunds and demat credit on T+2, listing on T+3, under SEBI's timetable.
हिन्दी में पढ़ें - UPI mandate and ASBA: how the money for an IPO application is blocked and released
How the money for an IPO application is blocked in the bank account through ASBA or a UPI mandate, the 5 pm cut-off on the last day, and when it is released.
हिन्दी में पढ़ें - IPO listing day: the special pre-open session and when trading starts
How an IPO's listing price is set on the first day: the special pre-open call auction from 9 am, the equilibrium price, and normal trading from 10 am on NSE and BSE.
- Tax on IPO shares disposed of on listing day or within a year
How gains on IPO shares are taxed in India: short-term capital gains at 20% within 12 months, long-term gains at 12.5% above ₹1.25 lakh, and the charges on a listing-day sale.
हिन्दी में पढ़ें - DRHP, UDRHP, RHP and prospectus: the four offer documents of an IPO
What the draft red herring prospectus, the updated draft, the red herring prospectus and the prospectus are, who files them and when, and what each one contains.
- Anchor investors in an IPO: who they are, when they bid and the lock-in
What the anchor portion of an Indian IPO is, who can be an anchor investor, when they bid, how the allocation is reported and the 30-day and 90-day lock-in.
- SME IPO rules: minimum application, market makers and the exchanges
How SME IPOs in India differ from mainboard issues: the NSE Emerge and BSE SME platforms, the two-lot minimum for individual investors, market making, and the rules from July 2025.