How Long Does IPO Allotment Take?
In India, IPO allotment typically takes six business days from the IPO subscription close date. SEBI's regulations require the allotment to be finalised and shares credited to demat accounts within six working days of IPO closure. The entire timeline from when an IPO closes to the day shares start trading is approximately seven business days.
IPO Timeline from Close to Listing
| Day | Activity |
|---|---|
| T (IPO close date) | Subscription closes; bid data collected by exchanges |
| T+1 | Technical processing; application data reconciliation |
| T+2 to T+4 | Basis of allotment prepared by registrar; SEBI/exchange review |
| T+5 | Basis of allotment approved and published; allotment to demat accounts begins |
| T+6 | Allotment finalised; shares credited to demat accounts; refunds processed |
| T+7 | Listing day; shares begin trading on NSE and/or BSE |
When Are Refunds Credited?
For ASBA applicants (which includes UPI-based applications), the blocked amount is released within one to two business days after allotment is finalised (T+6 or T+7). The funds are not "refunded" in the traditional sense; they are simply unblocked from your bank account. Your account balance becomes available for normal use as soon as the block is released by your bank's clearing system.
Checking Allotment Before T+6
While formal allotment credit happens by T+6, the registrar typically publishes the basis of allotment document around T+5. You can check your allotment status on the BSE website, NSE website, or registrar's portal using your PAN or application number even before shares are physically credited to your account.
Why the 6-7 Day Timeline?
The post-IPO processing involves:
- Reconciling millions of applications from across India.
- Running the computerised lottery for oversubscribed retail category.
- Coordinating with depositories (NSDL/CDSL) for electronic credit of shares.
- Processing ASBA block releases through banking channels.
- SEBI and exchange compliance verification at each step.
IPO Processing Speed vs. Global Markets
India's IPO processing timeline has improved significantly over the years. The shift to T+6 allotment and T+7 listing is faster than many global markets and reflects India's advanced digital infrastructure for capital markets. SEBI has also been exploring further reduction of this timeline.
Key Takeaway
IPO allotment takes approximately six business days from the IPO close date, with shares crediting on T+6 and listing on T+7. Plan accordingly: you cannot sell allotted shares until the listing day. Use the Lemonn app to track upcoming IPO dates, allotment timelines, and listing day preparations.
