What happens on IPO listing day
Updated 19 October 2026
Listing day is the first day IPO shares trade on the exchange — currently three working days after the issue closes (T+3).
The pre-open session
IPO shares do not simply start trading at the issue price. Exchanges run a special pre-open call auction in the morning: buy and sell orders are collected, and the price at which the most shares can change hands becomes the listing (opening) price. Normal trading starts after this session, usually at 10:00 am for mainboard IPOs.
Listing gain or loss
The difference between the opening price and the issue price is the "listing gain". It can be large in either direction and often differs from grey market premium estimates.
Selling on listing day
- Your allotted shares appear in your demat holdings before listing.
- You can place a sell order in the pre-open window or once normal trading starts.
- Limit orders give you control over price; market orders can fill at an unexpected price in a volatile open.
Price bands
Exchanges apply price bands to newly listed shares, which limit how far the price can move during the day. SME shares often hit these limits quickly.