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.
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.
- • 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
- • 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
See the fee table below for the statutory filing charge and common delay logic.
- • 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.
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.
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.
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.
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.
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.
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.
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
| Item | Fee | Notes |
|---|---|---|
| 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 cap | Annual fee payable to SEBI by listed companies. |
| PAS-3 ROC filing fee | INR 200 – 600 | Return 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.
Professional fee covering RHP review, allotment compliance, and listing day secretarial support. Registrar fees, exchange listing fees, and lead manager fees are separate.
Related services
Keep the company moving
DRHP preparation and SEBI filing — Stage 2 must be complete before the RHP and listing process begin.
Post-listing SEBI LODR compliance — quarterly results, shareholding pattern, insider trading, and annual secretarial compliance from listing day.
Full IPO lifecycle — all five stages in one place.
BSE SME / NSE Emerge listing — different timeline, lower thresholds, mandatory market making.
FAQ
Frequently asked questions
When must shares be listed after the IPO closes, and what happens if the deadline is missed?
Is ASBA mandatory for all IPO applicants, and how does the UPI mandate work for retail investors?
How is allotment determined when an IPO is oversubscribed in the RII category?
What is book building and how is the final IPO price determined?
What LODR compliance obligations apply from listing day?
Canonical reference: https://www.pvtltd.co/services/ipo-listing-process
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