Closed IPO

After an IPO closes, the investor has to wait to know the IPO allotment status. If the investor gets an allotment, the shares are transferred to their Demat account. If no share is allotted, the bank releases the blocked amount.

You can check the IPO allotment status by visiting the BSE website or the official registrar's website.

If an IPO is undersubscribed, the underwriter may lower the price to push its demand. However, the subscription amount is still less than 90% on the closing date; the company will return the money to the subscribers.

The 600-crore Latent View Analytics IPO has been subscribed 339 times, making it the most subscribed IPO.

After an IPO lists on the stock exchange, you can log in to your online trading account, select the stock you want to sell, enter the quantity, and sell the share(s). Investors usually invest in an IPO hoping the stock would list at a premium.

A quick scan of the IPOs listed in 2021 shows that a significant majority has listed at a higher price than the issue price. However, stocks may also list a discounted price. The listing price depends on the company's valuations and investor interest.

To begin with, you have to stay invested from the issue date until the listing date. You can sell the IPO shares on a listing day. However, some investors keep holding on to the shares even after listing. An IPO allows you to participate in the company's growth story by entering it early. 

There is no clear answer to how an IPO will perform on the first day. While some IPOs may become double their issue price, others may fall below the issue price. The Grey Market Premium (GMP) can give you some idea of the listing price.