Basic IPO FAQs

Can a buy order be placed during after hour session before IPO listing date?

You cannot order shares that are not yet listed on the stock exchange. You cannot even trade after hours.

The exchanges permit a pre-open trading session to trade IPO shares only on the first day of trading. Pre-open sessions last 45 minutes (9:00 to 9:45 am) and are where orders can be entered or modified.

The exchange determines the listing price for the IPO share based on the supply and demand of shares that were traded in the pre-open window. The IPO stocks go public at 10 AM.

If the listing price is higher or equal to the price that you have pre-opened in order to sell in preopen, your shares will be sold at the listing prices in the preopen trading session.

Your pre-open order will be cancelled if the listing price falls below the sell price in the preopen market.

Answered Monday, July 8, 2019,


In how many days does the issue open?


What do you mean by Basis of allocation or basis of allotment?


Can IPO application be revised or cancelled?


Where IPO application forms are available?


Is a minor eligible to apply for IPO?


Provide tips to choose right IPO.


In an IPO, can an individual apply for non institutional category of bidder?


Is there any minimum and maximum limit of the investment one can do in the HNI category?


How someone can apply online for IPO?


How is Listing price of IPO decided?


Define Right issue or RI.


Why does every hour the retail Individual Investor RII bidding status is not getting updated ?


List down the risk factors involved in applying in an IPO.


Can both the holders of joint demat account apply individually for an IPO?


For retail investors,why does maximum subscription amount is limited to Rs. 2 laks


List down determining factors for selection of IPO to invest.


For an IPO,How much tax I have to pay on returns(Capital gains)?


What is the procedure for withdrawal in IPO?


Without an IPO,how can a company get listed in stock exchange?


An issue is required to kept open for how many days?