How to Buy and Sell IPO Shares: Step-by-Step
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Editorial Team
Quick AnswerTo buy IPO shares, you must apply through your broker using a UPI mandate while the issue is open. If allotted, the shares are credited to your demat account before listing day. You can sell these shares immediately on the secondary market as soon as the stock officially lists at 10:00 AM.
1. The Application Process
First, monitor the Grey Market Premium (GMP) Tracker to gauge retail demand. Once you decide to invest, open your brokerage app and navigate to the IPO section. Select the IPO, choose your lot size (usually requiring ~₹15,000 for retail), and submit your UPI ID. Approve the mandate mandate on your UPI app to block the funds.
2. Checking Allotment
The registrar finalizes the allotment a few days after the IPO closes. You can check your status on the official registrar portal (like KFintech or Link Intime). If you don't receive an allotment, your UPI mandate is revoked and funds are unblocked.
3. Listing Day and Selling
On listing day, the stock will enter a pre-open session from 9:00 AM to 9:45 AM for price discovery. At 10:00 AM, normal trading begins. If you were allotted shares, they are completely free from lock-ins (unlike anchor investors). You can sell your entire holding at 10:00 AM to book listing gains, or hold the shares for long-term growth.
Frequently Asked Questions
Is it good to buy IPO on first day?
Many investors apply on the final day of the IPO to analyze the QIB (Qualified Institutional Buyer) subscription numbers and final GMP before committing their funds.
Can I sell my shares after IPO?
Yes, retail investors can sell their IPO shares immediately on the secondary market as soon as the stock officially lists.
Can I withdraw my IPO after listing?
No. Once an IPO lists and shares are credited, you cannot withdraw the application. You must sell the shares on the open market at the current trading price.