IPO in India: A Complete Guide for Investors

July 24, 2026 / Author Name:

An Initial Public Offering, or IPO, is the process through which a privately held company offers its shares to the public for the first time and gets listed on a stock exchange such as the BSE or the NSE. For Indian investors, IPOs have become one of the most talked-about ways to participate in the growth story of emerging businesses, from new-age technology platforms to established manufacturing and financial services firms. The Indian primary market has seen record activity in recent years, with hundreds of companies raising capital through mainboard and SME IPOs, drawing participation from retail investors, high-net-worth individuals, and institutional players alike.

This guide explains what an IPO is, why companies choose to go public, how the IPO process works under SEBI regulations, the different investor categories, how to apply using ASBA and UPI, and the key risks and evaluation criteria every investor should understand before subscribing to an IPO in India.

List of Upcoming IPO in India – Current IPO in India

Issuer CompanyOpen DateClose DateListing DateIssue PriceIssue Size (Cr.)Lot SizeExchange
Knack Packaging1 July 20263 July 20268 July 2026₹170₹439.50 Crore88BSE & NSE
Kusumgar Limited8 July 202610 July 202615 July 2026₹419₹650 Crore35BSE & NSE
Laser Power & Infra Limited9 July 202613 July 202616 July 2026₹214₹742 Crore70BSE & NSE
SBI Funds Management Limited14 July 202616 July 202621 July 2026₹574₹11,693 Crore26BSE & NSE
Alpine Texworld Limited14 July 202616 July 202621 July 2026(Expected)₹105₹126.25 Crore142BSE & NSE
Caliber Mining and Logistics Limited17 July 202621 July 202624 July 2026 (Expected)₹424₹450 Crore35BSE & NSE
Cube Highways Trust InvIT21 July 202623 July 202628 July 2026 (Expected)₹105 ₹1,800 Crore142BSE & NSE
Lohia Corp Limited23 July 202627 July 2026BSE & NSE
Xtranet Technologies23 July 202627 July 202630 July 2026₹127 ₹166.80 Crore110BSE & NSE
Indo-MIM23 July 202627 July 202630 July 2026BSE & NSE
Manipal Health IPO27 July 202629 July 20261 August 2026BSE & NSE

List of Upcoming SME IPO in India – Current IPO in India

Issuer CompanyOpen DateClose DateListing DateIssue PriceIssue Size (Cr.)Lot SizeExchange
Adon Agro29 June 20261 July 20266 July 2026₹70 ₹44.03 Crore2,000BSE SME
Atharva Polyplast30 June 20262 July 20267 July 2026₹60₹27 Crore2,000BSE SME
Seemax Resources30 June 20262 July 20267 July 2026₹141₹19.74 Crore1,000BSE SME
Kratikal Tech30 June 20262 July 20267 July 2026₹80₹48.69 Crore1,600NSE SME
Sampark India Logistics30 June 20262 July 20267 July 2026₹107₹16.63 Crore1,200BSE SME
Vinit Mobile30 June 20262 July 20267 July 2026₹158₹34.13 Crore800NSE SME
Teja Engineering1 July 20263 July 20268 July 2026₹80₹29.90 Crore1,600NSE SME
IC Electricals Limited3 July 20267 July 202610 July 2026₹99₹47.79 Crore1,200NSE SME
Devson Catalyst Limited9 July 202613 July 202616 July 2026₹118₹42.34 Crore 1,200BSE SME
Happy Steels9 July 202613 July 202616 July 2026₹66₹25 Crore2,000NSE SME
Millworks Technologies14 July 202616 July 202621 July 2026₹331 ₹160.33 Crore400BSE SME
Sotefin Bharat15 July 202617 July 202622 July 2026₹100 ₹45 Crore1,200NSE SME
Gulf Lloyds16 July 202620 July 202623 July 2026₹72₹63.00 Crore1,600 NSE SME
Metalic Technoforge21 July 202623 July 202628 July 2026NSE SME
Shree Balaji Textiles
22 July 2026		24 July 202629 July 2026
BSE SME
Silverstorm Parks24 July 202628 July 202631 July 2026BSE SME

What Is an IPO?

An IPO is the first sale of a company’s equity shares to the general public. Before an IPO, a company is privately held, with ownership typically concentrated among founders, promoters, venture capital firms, and early investors. Once the IPO is completed and the shares are listed, the company becomes a publicly traded entity, subject to ongoing disclosure and governance requirements set by the Securities and Exchange Board of India (SEBI) and the stock exchanges.

Going public allows a company to raise fresh capital for expansion, repay debt, fund working capital, or provide an exit route for existing investors. For the investing public, an IPO offers an opportunity to buy shares at the offer price before the stock begins trading in the open market, where the price is then determined by supply and demand.

Why Companies Launch an IPO

  • Capital for growth: Companies raise growth capital for expansion, new projects, or acquisitions without taking on additional debt.
  • Exit for early investors: An IPO allows founders, promoters, or private equity and venture capital investors to partially or fully exit their holdings.
  • Brand visibility and credibility: A listed company gains public visibility, credibility with customers and vendors, and easier access to future fundraising.
  • Currency for future deals: Listed companies can use their shares as currency for mergers, acquisitions, and employee stock option plans.
  • Debt reduction: Some IPOs are structured to reduce a company’s debt burden by using the proceeds to repay existing borrowings.

Types of IPOs in India

1. Fixed Price Issue

In a fixed price IPO, the company and its merchant bankers decide a specific price at which shares will be offered. Investors know the exact price in advance and must pay the full amount while applying. This structure is less common today for large mainboard issues but is still used occasionally, particularly for smaller offerings.

2. Book Building Issue

Most IPOs in India today follow the book-building process, where the company announces a price band (a lower and upper limit) instead of a fixed price. Investors bid within this band, and the final issue price is discovered based on the demand received across investor categories. This method is considered more market-driven and transparent.

The IPO Process in India, Step by Step

1. Appointment of Merchant Bankers

The company appoints one or more SEBI-registered merchant bankers, also called book-running lead managers, to structure the offering, conduct due diligence, and coordinate with regulators, legal advisors, and auditors.

2. Filing the Draft Red Herring Prospectus (DRHP)

The company files a Draft Red Herring Prospectus with SEBI. This document contains detailed information about the company’s business, financials, risk factors, promoters, use of IPO proceeds, and shareholding pattern. SEBI reviews the DRHP and may seek clarifications before granting observations, which is effectively regulatory clearance to proceed.

3. Marketing and Roadshows

Once SEBI clears the offering, the company and its bankers conduct roadshows to generate interest among institutional investors, both domestic and international, and finalize the price band for the book-building process.

4. Filing the Red Herring Prospectus (RHP) and Opening the Issue

The Red Herring Prospectus, which includes the price band and issue size, is filed with the Registrar of Companies. The IPO is then opened to the public for a specified number of days, typically three working days, during which investors across categories can submit their bids.

5. Subscription and Allotment

Once bidding closes, the issue is evaluated for subscription levels in each investor category. If the retail portion or any other category is oversubscribed, allotment is done through a computerized lottery system to ensure fairness. The basis of allotment is finalized in coordination with the registrar to the issue.

6. Listing on the Stock Exchange

After allotment, shares are credited to successful applicants’ demat accounts, and refunds are processed for unsuccessful or partially successful applications. The stock is then listed and begins trading on the NSE and/or BSE, typically within a few days of the issue closing, as mandated by SEBI’s T+3 listing timeline.

Categories of IPO Investors

SEBI classifies IPO applicants into distinct categories, each with a reserved portion of the total issue size:

  • Qualified Institutional Buyers (QIBs): Mutual funds, banks, insurance companies, and foreign portfolio investors typically get the largest allocation, often around 50% of the issue in book-built offers.
  • Non-Institutional Investors (NIIs): Also called High Net-Worth Individuals (HNIs), this category includes investors applying for more than ₹2 lakh worth of shares, usually reserved around 15% of the issue.
  • Retail Individual Investors (RIIs): Individual investors applying for shares worth up to ₹2 lakh, generally reserved a minimum of 35% of the issue in most mainboard IPOs.
  • Employee Quota: Some IPOs reserve a portion of shares for permanent employees of the company, often at a discount to the issue price.

How to Apply for an IPO in India

Retail investors in India apply for IPOs primarily through the ASBA (Application Supported by Blocked Amount) facility, which blocks the bid amount in the applicant’s bank account rather than debiting it immediately. The amount is debited only if shares are allotted; otherwise, the block is released automatically.

  • 1. Prerequisites: A demat account and a linked bank account with UPI or net banking access enabled for IPO applications.
  • 2. Application channels: Applications can be made through a broker’s trading app, net banking portal, or directly on the exchange’s IPO platform using UPI as the payment mandate.
  • 3. Bidding: Investors specify the number of lots and can bid at the cut-off price or within the price band; the UPI mandate is then approved through the investor’s UPI app.
  • 4. Checking allotment status: On allotment day, investors can check status on the registrar’s website or the exchange’s portal using their PAN or application number.

Recent Trends in the Indian IPO Market

The Indian primary market has grown significantly over the past few years, with a mix of large mainboard IPOs from established companies and a surge of SME IPOs from smaller, high-growth businesses. Sectors such as technology and internet platforms, financial services, renewable energy, defence manufacturing, and consumer businesses have seen strong investor interest. Regulatory reforms, faster listing timelines, wider UPI-based participation, and rising retail investor awareness have all contributed to higher subscription levels across recent offerings. At the same time, market regulators have tightened disclosure norms and anchor investor lock-in requirements to improve transparency and reduce speculative listing-day volatility.

SEBI Regulations and Investor Protection

SEBI plays a central role in regulating IPOs in India through the SEBI (Issue of Capital and Disclosure Requirements) Regulations. Key investor protection measures include mandatory disclosure of risk factors and financials in the prospectus, restrictions on promoter shareholding lock-in, anchor investor lock-in periods, a shortened listing timeline to reduce the gap between issue closure and trading, and strict advertising and marketing guidelines to prevent misleading claims. Investors are encouraged to read the RHP carefully rather than relying solely on brokerage recommendations or social media commentary before applying.

Risks of Investing in IPOs

  • Listing price risk: Shares can list below the issue price, particularly in weak market conditions or when valuations are considered stretched relative to fundamentals.
  • Volatility: Newly listed stocks often experience sharp price swings in the initial days and weeks of trading due to limited trading history and speculative activity.
  • Limited track record: New-age or loss-making companies may have limited operating history, making it harder to assess long-term profitability.
  • Oversubscription and allotment risk: A large IPO size relative to demand can lead to allotment uncertainty for retail applicants, even in heavily marketed issues.
  • Valuation risk: Some issuers may price the offering aggressively relative to peers, leaving limited room for post-listing upside.

How to Evaluate an IPO Before Investing

  • Study the financials: Review revenue growth, profitability trends, debt levels, and cash flow consistency over at least the past three financial years disclosed in the RHP.
  • Check the valuation: Compare the issue’s price-to-earnings or price-to-book ratio with listed peers in the same sector to judge whether the pricing is reasonable.
  • Understand use of proceeds: Understand exactly how the funds raised will be used, whether for expansion, debt repayment, or an offer for sale by existing shareholders.
  • Read the risk factors: Read the risk factors section of the prospectus closely, as it discloses litigation, regulatory, and business-specific risks the company itself has flagged.
  • Assess promoter holding and lock-in: Note the promoter shareholding post-issue and lock-in periods for anchor and promoter shares, since large lock-in expiries can pressure the stock later.

Tax Implications of IPO Investments

Gains from IPO shares are taxed under capital gains rules in India. If listed shares are sold within 12 months of allotment, the gain is treated as short-term capital gains and taxed at the applicable rate for equity shares. If held for more than 12 months, the gain qualifies as long-term capital gains, with exemption available up to a specified threshold in a financial year and tax applicable on gains beyond that limit. Securities Transaction Tax (STT) is applicable on the sale of listed equity shares, and investors should account for this while calculating post-tax returns. Tax rules can change with each Union Budget, so investors should verify current rates before filing returns.

Conclusion

IPOs offer Indian investors a direct route to participate in a company’s growth from the earliest stage of its life as a public entity. The process is well-regulated by SEBI, with clear timelines, transparent disclosure requirements, and a fair allotment mechanism designed to protect retail participants. That said, an IPO is not automatically a good investment simply because it is heavily subscribed or actively discussed online. Sound decisions depend on studying the company’s financials, understanding the purpose of the fundraise, comparing valuations with listed peers, and being realistic about the risks of investing in a business with a limited public trading history. Approaching IPOs with the same diligence applied to any other equity investment, rather than treating them purely as listing-day trading opportunities, is likely to serve investors better over the long term.

FAQs

What is the minimum amount required to apply for an IPO in India?

For retail investors, the minimum investment is one lot at the upper end of the price band, which typically ranges from ₹10,000–₹15,000 depending on the issue. The exact lot size and price band are disclosed in the RHP for each IPO.

How can I check my IPO allotment status?

You can check allotment status on the registrar’s website (like Link Intime or KFin Technologies) or on the NSE/BSE portal using your PAN, application number, or demat account number, usually a day or two before listing.

What happens if I don’t get IPO allotment?

If shares aren’t allotted, the blocked amount under ASBA is released back to your bank account automatically within a few days, with no separate refund request needed.

Can I sell IPO shares on listing day?

Yes, once shares are credited to your demat account and the stock is listed, you can sell them on listing day itself, though gains are taxed as short-term capital gains if sold within 12 months.

Is it safe to invest in every IPO that comes to the market?

No. Subscription levels or hype alone don’t indicate quality. Each IPO should be evaluated on its own financials, valuation versus peers, use of proceeds, and disclosed risk factors before investing.

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