What happens on IPO listing day
Allotted shares reach your demat account before listing, and on listing day they can be sold like any other share once trading starts.
Timing
On listing day, the exchanges run a special pre-open session for the new share in the morning. Orders are collected, and the listing (opening) price is found by a call auction. Normal trading in the share starts at 10 AM.
The listing price is set by those pre-open orders, not by the GMP. A stock can list above or below what the grey market suggested.
Selling on listing day
You can place a sell order during the pre-open session or after trading starts, from your broker app's holdings. A limit order lets you choose your price; a market order sells at the going price, which can move quickly in the first minutes.
If you keep the shares, nothing needs to be done: they stay in your demat account. Gains on shares sold within a year are short-term capital gains; see the guide on tax on IPO gains.
Things to know
Listing-day prices can swing a lot, and new shares often have price bands that limit how far they can move in a day. For SME IPOs, trading is in lots, so you sell in the same lot size you were allotted.
IPO Khata records the listing price and the listing-day close for every IPO, so you can see how past IPOs listed compared with their GMP.
Related guides
- What is IPO GMP? Full form, meaning and how to calculate it
- Tax on IPO gains
- How IPO allotment works
- How an IPO share lists: the pre-open session
More on gmp, listing day and tax
- Kostak and subject-to-sauda, explained
- Diwali muhurat trading 2026: date, timings and how it works
- Selling or holding IPO shares on listing day: what to weigh
- How to sell IPO shares: listing day step by step
- Is the IPO grey market legal? What it is and the risks
- How to calculate IPO profit: listing gain per lot and percentage
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Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.