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Money word, in simple language

IPO

Also called Initial public offering

Initial public offering: when a company sells its shares to the public for the first time.

Stocks Figures verified 2026-10-31

Example. After its IPO closes, a company's shares list on the stock exchange within three working days.

An IPO, or initial public offering, is a company’s first sale of shares to the public. You apply in lots, your money is only blocked through ASBA until allotment, and the shares list on a stock exchange within three working days of the issue closing. Our IPO explainer walks through the steps.

Questions people ask

What is the full form of IPO?

IPO stands for initial public offering. It's when a company first offers its shares to the public. Once shares are allotted, they list on a stock exchange and can be traded.

Do I need a demat account to apply for an IPO?

Yes. Allotted shares are credited to your demat account, so you need one to apply. You apply through your broker or your bank's net banking.

When do IPO shares list?

Within three working days of the issue closing, a timeline SEBI made mandatory from 1 December 2023. Check the current rules, as timelines can change.

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