The Complete IPO Guide for Indian Investors · Chapter 12 of 15
Listing Day: What to Expect
Opening and the pre-open session
Mainboard issues have a pre-open call auction before the normal market opens, which determines the opening price. The opening price may differ widely from the GMP guess, and it is common to see a stock open high and slide, or open low and recover.
Price bands on listing day
The exchange applies a price band on the first day, and special rules apply for certain issues. Always check the circuit limit for the specific stock so that you know how far the price can move in the session.
Selling or holding
Some applicants sell on listing day to book a gain; others hold for the business. Decide your plan before the day, based on the reason you applied, not on emotion once the price starts moving.
A rule of thumb many investors use: if you applied for listing gain, sell according to your plan; if you applied for ownership, ignore day-one noise and revisit your view after the first results.
Costs
Selling shares costs brokerage, securities transaction tax, exchange charges and GST, so a small gain can shrink quickly. Use the Brokerage & Charges Calculator to see the net result before you sell.
After listing
Within the first weeks, lock-in expiries for anchors and pre-IPO shareholders and the first quarterly results can move the price. Mark those dates for any stock you keep.
Key takeaways
- Plan your exit before listing day.
- Check the circuit limits for the stock.
- Include all charges when you compute a gain.
- Anchor lock-in expiries can move the price later.