InvestorQ : What are the major steps during the IPO and post IPO?
rhea Babu made post

What are the major steps during the IPO and post IPO?

Answer
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2 years ago


The actual issue is the culmination of months of efforts. Book building applications can be logged online trough your online trading account or physically through your broker or your banker to the issue. Normally, the IPO is kept open for a period of 3-4 days and the updated subscription numbers are available on a continuous basis from both the stock exchanges.

Once the issue is closed and satisfactorily subscribed to, then the basis of allotment is finalized in the next 1 week’s time. Here allotments are made based on the basis of allotment that is approved by the regulator and the exchanges. The delay in issuing refunds has reduced drastically since retail investments are required to come through the ASBA (Application Supported by Blocked Amount) route where the debit happens only on allotment.

Finally, there is the actual listing of the stock which converts the IPO into a secondary market play. From that day, the stock can be purchased and sold on the secondary market. The IPO process in India has evolved substantially over the last few years. The effort is still on to compress the listing time still further. That could happen soon with the accent on digitization.