Learn the basics

Three short guides. Updated 20 October 2026

What is an IPO?

An IPO (initial public offering) is when a company sells its shares to the public for the first time, so they can be bought and sold on the stock market.

Apply. For 3 days you can bid for shares in "lots", which are fixed bundles of shares. You apply through your broker app or your bank.
Money is blocked, not taken. The amount stays in your bank account but you can't spend it until results are out.
Results. If more people apply than there are shares, shares are given out by lottery. If you don't get any, the block is released.
Listing day. About 3 working days after closing, the shares start trading. The price can go up or down.

Small companies (SME IPOs) list on a separate platform, need a bigger minimum amount and can swing much more.

How expected gain (GMP) works

Before listing, some traders buy and sell IPO shares informally. The extra amount they pay over the IPO price is called the grey market premium (GMP). We call it "expected gain".

Example: price ₹100, GMP ₹20. Traders expect the share to open around ₹120 on listing day.

GMP is unofficial, unregulated and often wrong. Use it as one signal next to demand, the company's numbers and expert views, never on its own.

Applying from abroad (NRIs)

You need an Indian PAN, a demat account marked as NRI, and an NRE or NRO bank account.
Apply through your bank's net banking (ASBA). UPI bids are usually only for residents of India.
NRE money can be sent abroad freely. NRO money can be sent abroad up to USD 1 million a year, after tax.
Not every IPO is open to NRIs. Check "Eligible investors" in the offer document.
Bidding closes at 5 PM India time on the last day. I Love IPO shows that deadline in your own time zone.
In the US, Indian shares may need to be reported (FBAR and FATCA). Speak to a tax adviser.