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Initial Public Offerings (IPO)

When And How Do Investors Get The Allotment of Shares?

Next, let us discuss when and how the shares are allotted to investors? 

The investor is entitled to receive a Confirmatory Allotment Note (CAN) in case he has been allotted shares within four to five working days from the closure of the issue. The registrar has to ensure that the demat credit or refund as applicable is completed within fifteen working days of the closure of the book-built issue. 


When and how will the investors get a refund in case of non-allocation?

SEBI has made it mandatory for all investors to apply for an IPO using ASBA (Application Supported by Blocked Amount) that authorizes to block the application money in the bank account, for subscribing to an issue. Hence, application money shall be debited from the bank account only if the investor has been allotted the equity shares. In case of non-allotment of shares, the amount is unblocked immediately and is free to use. The advantage of using ASBA is that investors continue to earn interest on the application money until shares are allotted. Also, there is no hassle of delay in processing refunds in case of oversubscription.


When will the shares allocated to investors get listed?

The listing on the stock exchanges is done within 6 working days from the closure of the issue. Please note six working days excludes Sundays and bank holidays.


Summarized IPO Timelines



A timeline for an IPO is given below:


Issue Period: The IPO issue period is open for usually 3-4 days


Share allotment or Refund: It usually takes 4-5 working days after the closure of issue in case of book building.


Listing: The listing of shares on the exchanges take place in usually 6 working days (excluding Saturdays & Sundays) from the closure of the issue.

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