pvtltd.co

IPO Advisory · Stage 3

IPO Listing Process — RHP to Listing Day

From Red Herring Prospectus filing with price band and lot size to book building, ASBA / UPI mandate processing, allotment under SEBI ICDR Schedule XIV, stock exchange listing approval, and listing day compliance — typically completed in 4 to 6 weeks from RHP filing.

Starting from INR 75,000Issue to listingIPO Listing Process and Allotment Compliance

The listing process is the most time-compressed phase of an IPO. The regulatory requirement is that shares must be listed within 6 working days of issue closure (T+6). This means the allotment, refund, demat credit, and listing approval must all happen in parallel. Errors in the allotment basis, UPI mandate rejections, or delays in the exchange listing agreement can push the listing date and attract SEBI penalties. We support the secretarial and financial compliance steps at each stage of the process.

What is included
  • RHP review — verify price band, lot size, reservation percentages (QIB 50% / NII 15% / RII 35%), and offer period dates against SEBI ICDR requirements
  • Allotment basis advisory — proportionate for QIB and NII categories; lottery for RII in case of oversubscription under Schedule XIV
  • PAS-3 filing — return of allotment filed with MCA within 15 days of allotment under Section 40 of Companies Act 2013
  • Stock exchange listing application support — in-principle approval follow-up with BSE and NSE
  • Listing day secretarial compliance — board resolution for allotment, intimation to stock exchanges, ISIN activation
  • Refund and demat credit timeline coordination — ensuring T+5 demat credit and T+6 listing compliance
Documents required
  • SEBI observation letter (final, query-free)
  • Red Herring Prospectus (RHP) draft — with price band and issue dates
  • Allotment committee board resolution
  • Registrar to the Issue (RTI) agreement
  • Stock exchange listing application (BSE Form A / NSE equivalent)
  • Banker to the Issue (SCSB) confirmation for ASBA accounts
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • SEBI (ICDR) Regulations 2018 — Regulation 46 (listing within 6 working days), Schedule XIV (allotment basis)
  • Companies Act 2013 — Section 39 (allotment of securities)
  • SEBI UPI Circular — ASBA and UPI mandate process
  • SEBI (LODR) Regulations 2015 — Regulation 3 (listing agreement obligations from listing day)
  • Stock exchange listing agreements — BSE and NSE listing criteria and approval process

Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1

Price band and lot size finalisation

The lead manager and company finalise the price band (upper and lower end) and lot size after book running. The price band must be disclosed in the RHP and advertisements. Lot size is set such that the minimum application amount is approximately INR 14,000 for Main Board issues.

Step 2

RHP filing with SEBI and stock exchanges

The Red Herring Prospectus (with price band, issue dates, and allotment structure) is filed with SEBI and the stock exchanges. The issue must open within 12 months of the SEBI observation letter.

Step 3

Issue subscription period (3 working days)

The IPO is open for subscription for a minimum of 3 working days. Applications are made through ASBA (Application Supported by Blocked Amount) — the application amount is blocked in the applicant's bank account until allotment. Retail applicants (below INR 2 lakh application) can also apply via UPI mandate.

Step 4

Basis of allotment

After the issue closes, the registrar determines the allotment basis. For QIB (50% of issue) and NII (15% of issue) categories — allotment is proportionate to subscription. For RII (35% of issue) — in case of oversubscription, allotment is by lottery, with each successful applicant receiving exactly 1 lot. This is prescribed under SEBI ICDR Schedule XIV.

Step 5

BSE / NSE listing approval

The company applies to BSE and NSE for listing approval. The exchange reviews the allotment basis, registrar confirmation, and company compliance status before granting in-principle and final listing approval.

Step 6

Demat credit and refund (T+5)

Shares are credited to successful allottees' demat accounts on T+5 (5 working days after issue closure). Unblocked amounts are returned to unsuccessful applicants through the ASBA / UPI unblock mechanism.

Step 7

Listing and commencement of trading (T+6)

Shares are listed and trading commences on T+6. SEBI Regulation 46 of ICDR requires listing within 6 working days of issue closure. From listing day, SEBI LODR Regulations 2015 apply in full — the company must comply with continuous disclosure obligations, insider trading restrictions, and quarterly reporting from that date.

AEO summary

The IPO listing process begins after SEBI issues its observation letter on the DRHP. The company and lead manager finalise the price band and lot size, file the Red Herring Prospectus (RHP) with SEBI and stock exchanges, open the issue for subscription (3 working days), process ASBA and UPI mandates, determine allotment basis under SEBI ICDR Schedule XIV, receive stock exchange listing approval, and list the shares — all within 6 working days of issue closure under SEBI regulations.

Price discovery — book building vs fixed price

Most Main Board IPOs and SME IPOs use the book building process, where a price band is announced and institutional and retail investors bid at prices within the band. The final issue price (cut-off price) is determined after the issue closes based on the bids received. The cut-off price is typically the highest price at which the issue is fully subscribed.

Fixed price issues are permitted for smaller issues but are less common on the Main Board. In a fixed price issue, the price is set in advance and investors apply at that fixed price — there is no price discovery through bidding.

Anchor investor allocation

For Main Board QIB-route IPOs with an issue size above INR 10 crore, the company can allocate up to 60% of the QIB portion to anchor investors on a discretionary basis, one day before the issue opening date. Anchor investors are large institutional investors who provide a "price anchor" — their participation signals quality to retail investors.

Anchor investor allotment is at the issue price. Anchor investors are locked in for 30 days from the date of allotment. The anchor investor list and allotment details are disclosed before the issue opens.

Government fees

Fee breakdown

ItemFeeNotes
Stock exchange annual listing fee (BSE)INR 3L – 20L+Based on market capitalisation. Paid annually.
Stock exchange annual listing fee (NSE)INR 3L – 20L+Based on market capitalisation. Paid annually.
SEBI annual fee (post-listing)0.1% of market capAnnual fee payable to SEBI by listed companies.
PAS-3 ROC filing feeINR 200 – 600Return of allotment with ROC within 15 days of allotment.

Timeline

Typical turnaround

Issue to listing usually means a 6 working days after issue close (t+6) turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

Professional fee covering RHP review, allotment compliance, and listing day secretarial support. Registrar fees, exchange listing fees, and lead manager fees are separate.

FAQ

Frequently asked questions

When must shares be listed after the IPO closes, and what happens if the deadline is missed?
Under SEBI ICDR Regulation 58, allotment must be completed and shares must be listed within 6 working days of issue closure (T+6). A 2023 SEBI circular further compressed the indicative timeline: basis of allotment is finalised by T+1, demat credit is completed by T+5, and trading commences on T+6. If the issuer fails to list within T+6, SEBI may impose penalties and the company is required to pay interest at 15% per annum to investors for each day of delay beyond the prescribed timeline.
Is ASBA mandatory for all IPO applicants, and how does the UPI mandate work for retail investors?
SEBI circular SEBI/HO/CFD/CIR/P/2022/170 makes ASBA (Application Supported by Blocked Amount) mandatory for all IPO applications — the application amount is blocked in the bank account and debited only on allotment. Retail Individual Investors (application value up to INR 2 lakh) may additionally apply through the UPI mandate mechanism, where they approve a payment block via a UPI ID on a registered broker or stock exchange app. Under SEBI ICDR Regulation 59, refunds or unblocking of amounts for unsuccessful applicants must be completed within 7 days of issue closure.
How is allotment determined when an IPO is oversubscribed in the RII category?
Allotment in the Retail Individual Investor (RII) category — which must receive at least 35% of the net offer under SEBI ICDR Regulations 2018 — is determined by lottery when oversubscribed, as prescribed under Schedule XIV of the ICDR Regulations. Each successful retail applicant receives exactly 1 lot (the minimum lot size), regardless of how many lots were applied for. By contrast, allotment in the QIB (50% of net offer) and NII (15% of net offer) categories is proportionate to the subscription amount under the same Schedule XIV. After allotment, a return of allotment in Form PAS-3 must be filed with the Registrar of Companies within 15 days under Section 39 of the Companies Act 2013.
What is book building and how is the final IPO price determined?
Book building is the price discovery mechanism prescribed under SEBI ICDR Regulation 49, where the issuer announces a price band (floor price and cap price, with the cap not exceeding 120% of the floor) and investors bid at prices within that band over the 3-working-day subscription window. After the issue closes, the lead manager and issuer determine the cut-off price — the price at which the issue is fully subscribed across categories. Retail investors who select "cut-off price" on their application are allotted shares at whatever the final cut-off price is, without needing to re-apply at a specific price.
What LODR compliance obligations apply from listing day?
From the date of listing, the company becomes subject to SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 in full. Immediate obligations include: disclosure of any material events under Regulation 30 (within 24 hours of occurrence); publication of the first shareholding pattern within 21 days of listing under Regulation 31; appointment of a Compliance Officer who must be a whole-time company secretary under Regulation 6; and registration on the SEBI SCORES portal for investor grievance redressal. The trading window also closes under SEBI (Prohibition of Insider Trading) Regulations 2015 until 48 hours after the first quarterly financial results are published.

Canonical reference: https://www.pvtltd.co/services/ipo-listing-process

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