What Happens Between IPO Allotment and Listing Day

Once an IPO closes, a defined sequence of steps follows. First the registrar finalises the basis of allotment, which decides how many applicants receive shares, especially in oversubscribed issues. Next, shares are credited to the demat accounts of successful applicants and unblocked or refunded amounts are released for those who did not receive an allotment. Exchanges then announce the listing date and the issue enters a special pre-open session to discover its opening price. On listing day, price movement can be sharp because supply and demand are meeting for the first time. Investors who applied for long-term reasons should revisit the business case, while those looking for short-term gains should be aware of the risks of volatility. This explainer is educational only.