The IPO listing date is the day when a company’s shares start trading on the stock exchange (NSE/BSE) for the first time. This is when IPO applicants finally see how the market values the company.
Below is a step-by-step explanation of what actually happens on listing day.
- Credit of shares to Demat account: If you were allotted shares, they are credited to your Demat account before market opens. You can check share credit in your Demat holdings. If you did not get allotment, your blocked funds are already unblocked
- Listing price is discovered : This price is decided based on demand & supply, buy and sell orders placed before opening and overall market sentiment. When trading begins, the stock opens at a listing price
- Trading begins on the exchange: Both retail and institutional investors can trade the stock like any other listed share. Once listed, shares can be sold immediately (to book listing gains) or held for long-term investment orbought by new investors who missed the IPO
- High volatility is common: IPO stocks often show sharp price movements on listing day. Prices may move up or down quickly which is normal on listing day due to profit booking by IPO allottees, fresh buying interest and market sentiments.
