10.3How does an IPO work?
Time-sensitive: T+3 IPO listing timeline as of November 2026. Rules and rates change, so check the official source before acting.
1What is it?
The company appoints bankers, files documents with SEBI, sets a price band, takes bids for about 3 days, allots shares and lists, all within a few days under SEBI’s T+3 listing timeline.
2Why does it exist?
Each step is regulated to keep the process fair and transparent.
3Stock market example
You apply through your broker app or bank (ASBA) using UPI. The money is only blocked in your bank, not debited, until allotment.
4Diagram
- 1Hire merchant bankers
- 2File DRHP with SEBI
- 3SEBI observations
- 4File RHP, announce price band
- 5Bidding opens (3 days) via UPI/ASBA
- 6Allotment (T+1)
- 7Refund/unblock & credit (T+2)
- 8Listing (T+3)
5Quick revision
- DRHP → SEBI → RHP → bidding → allotment → listing.
- Listing on T+3.
- Money blocked via UPI/ASBA.
6Knowledge check
Q1. How many days after close does listing happen?Show answer
T+3 (three working days).
Q2. Is IPO money debited when you apply?Show answer
No, only blocked until allotment.
Q3. What is ASBA?Show answer
Application Supported by Blocked Amount.