10.16What is listing gain?
1What is it?
Listing gain is the profit from the difference between the issue price and the listing/selling price.
2Why does it exist?
Many applicants aim to sell on listing day. Gains are not guaranteed: some IPOs list at a discount (loss).
3Calculation
Listing gain % = (Listing price − Issue price) ÷ Issue price × 100
- Issue ₹300, lists at ₹360 → +20%.
- Issue ₹300, lists at ₹270 → −10%.
With one lot of 50 shares: +₹3,000 or −₹1,500.
4Quick revision
- Gain from issue price to listing price.
- Can be negative.
- Taxed as STCG if sold within 12 months.
5Knowledge check
Q1. Issue ₹200, lists ₹250. Gain %?Show answer
25%.
Q2. Are listing gains guaranteed?Show answer
No.
Q3. Tax on selling at listing?Show answer
STCG (20%).