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

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Are you a day trader?

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:

  1. 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.
  2. 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:
  3. 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.
  4. If the listing price is lower than your sell order price in the pre-open market, your pre-open order will be canceled.
  5. The actual trading of IPO shares for public starts at 10 AM on the listing day.
answered


10 Comments

Venkat
10. Venkat  Dec 20, 2007 23:28 I Like It. | Report Abuse Reply 0
Yes, We can sell in Grey market.
D.A.Shaikh
10.1. D.A.Shaikh  Oct 3, 2017 18:20 I Like It. | Report Abuse 0
I have purchases share of MCX-SX in Grey Market .plz contact
Prateek
9. Prateek  Jul 1, 2016 19:37 I Like It. | Report Abuse Reply 0
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.
SURAJSINGH RAJPUT
8. SURAJSINGH RAJPUT  Aug 15, 2015 09:44 I Like It. | Report Abuse Reply 0
this is so confusing, if we cannot access the shares before they get listed then what do people trade in the Grey market?
dipak
7. dipak  Jan 24, 2008 11:25 I Like It. | Report Abuse Reply 0
yes, we can sell shares in grey market...bcoz it's nt legally
Ashish Singh tanwar
6. Ashish Singh tanwar  Jan 10, 2008 14:08 I Like It. | Report Abuse Reply 0
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
star
5. star  Jan 9, 2008 13:57 I Like It. | Report Abuse Reply 0
No we can not sell the shares before lsting in stock market
ajit
4. ajit  Dec 27, 2007 15:05 I Like It. | Report Abuse Reply 0
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.

yogesh
3. yogesh  Dec 23, 2007 13:43 I Like It. | Report Abuse Reply 0
how we can sell in grey market
Madhu G N
2. Madhu G N  Dec 20, 2007 18:57 I Like It. | Report Abuse Reply 0
No, we can not sell the shares untill the stock gets listed.
ashish
1. ashish  Dec 18, 2007 12:50 I Like It. | Report Abuse Reply 0
no








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