IPOs in India
The IPO Process, Step by Step
A company files a draft prospectus with SEBI, sets a price band, opens the issue for a few days, allots shares and lists them on the exchange.
An IPO takes months of preparation.
Draft document
The company files a Draft Red Herring Prospectus with SEBI, which reviews it.
Roadshows
Bankers and management meet institutional investors to gauge demand.
Subscription
The issue opens for about three days within a price band.
Allotment and listing
Shares are allotted, unsuccessful applicants get refunds, and trading begins on the exchange, now within three working days of closing.
A three-day window
Investors apply through their broker or bank app within a fixed period.
Assuming you can buy after the window
You must apply during the issue period.
Key takeaways
- The DRHP is filed with SEBI.
- A price band is set.
- The issue runs for three days.
- Listing follows within days.
No recording for this one yet - EconReader can read it aloud for you.