The Process

How Does the IPO Process Work? — Step by Step

1

DRHP Filing with SEBI

The company files a Draft Red Herring Prospectus — a detailed document disclosing financials, risks, and use of funds. SEBI reviews it and issues observations (typically in 30–75 days). Jio filed its DRHP on June 19, 2026.

Why it matters The DRHP is the most detailed disclosure document an investor gets — reading it carefully often reveals risks the marketing buzz won't mention.
2

Price Band Announcement

The company sets a price band — a lower and upper price range for the shares. Investors bid within this range. Example: Hyundai India's IPO was priced at ₹1,865–₹1,960 per share.

Why it matters Bidding at the upper end signals confidence but pays more; bidding at the lower end pays less but risks missing allotment in a hot IPO.
3

Subscription Window Opens (3 Days)

Retail investors, HNIs, and institutional buyers (QIBs) apply during a 3-day window. You apply via your broker's app using ASBA (money is blocked in your bank, not debited until allotment).

Why it matters ASBA means your funds stay in your account earning nothing extra but also never leave your control until shares are actually allotted.
4

Allotment (Lottery for Retail)

If the IPO is oversubscribed (more applications than shares), a computer lottery decides who gets shares. Retail investors applying for one lot have a fair chance regardless of application size.

Why it matters Applying for more lots doesn't improve your odds in the retail lottery — it just means a bigger blocked amount if you don't get allotted.
5

Listing Day — Shares Trade Freely

Shares list on the exchange 6 trading days after the subscription closes. The listing price is set by market demand. This is when most short-term investors make — or lose — money.

Why it matters Once listed, the issue price becomes irrelevant — the stock is now valued purely by the open market, for better or worse.