Can we sell the stock allotted to us in an IPO before the stock gets listed?

asked Wednesday, January 16, 2008

No, you cannot do that in the stock market. But this can be done in the grey market or over the counter market through a trusted broker in your neighborhood.

On the listing day a special trading session is commenced by the stock exchanges for price discovery of the IPO stocks. This session is called Pre-open session. The pre-open session is for 45 minutes (9:00 AM to 9:45 AM) during which orders can be entered, modified and canceled.

Note:

The listing price of the IPO share on the day of listing is determine by the demand and supply of IPO shares in the pre-open session.
The price is discovered between 9:45 AM to 10 AM. Also the orders in the pre-open sessions are settled in this time based on 2 scenarios as below:
If the listing price is equal or higher than the price you pre-open order to sell in pre-open; your shares are sold at the listing price in the pre-open trading session.
If the listing price is lower than your sell order price in the pre-open market, your pre-open order will be canceled.
The actual trading of IPO shares for public starts at 10 AM on the listing day.

answered Monday, July 8, 2019

10 Comments

10. Venkat

| Link|December 20, 2007 11:28:45 PMReply

Yes, We can sell in Grey market.

10.1. D.A.Shaikh

| Link|October 3, 2017 6:20:13 PM

I have purchases share of MCX-SX in Grey Market .plz contact

9. Prateek

| Link|July 1, 2016 7:37:27 PMReply

Its not about selling.. Its about the legality of selling shares in grey market.. I dont see any rules which forbids us to sell shares before getting listed.

8. SURAJSINGH RAJPUT

| Link|August 15, 2015 9:44:57 AMReply

this is so confusing, if we cannot access the shares before they get listed then what do people trade in the Grey market?

7. dipak

| Link|January 24, 2008 11:25:03 AMReply

yes, we can sell shares in grey market...bcoz it's nt legally

6. Ashish Singh tanwar

| Link|January 10, 2008 2:08:32 PMReply

Once the shares are allocated you get the message that you have been allocated this no of shares. It does not show anywhere in your account. Therefore you cannot access these shares. Thus you cannot sell them before they are listed

5. star

| Link|January 9, 2008 1:57:26 PMReply

No we can not sell the shares before lsting in stock market

4. ajit

| Link|December 27, 2007 3:05:36 PMReply

Unless a price is fixed (listed price) whether + or - .
One cannot sell. And he thus cannot estimate his profit or loss as the listing price is not known.

3. yogesh

| Link|December 23, 2007 1:43:08 PMReply

how we can sell in grey market

2. Madhu G N

| Link|December 20, 2007 6:57:26 PMReply

No, we can not sell the shares untill the stock gets listed.

1. ashish

| Link|December 18, 2007 12:50:22 PMReply

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Can we sell the stock allotted to us in an IPO before the stock gets listed?

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