The trajectory from applying for an Initial Public Offering (IPO) to securing an allocation in your name involves a sequence of stages collectively referred to as the IPO timeline. This process, often outlined in an IPO calendar, unfolds through distinct subdivisions:
IPO timeline:
Delving into the world of Initial Public Offerings (IPOs) involves navigating a carefully orchestrated sequence of steps, collectively referred to as the IPO timeline.
1. Open/Close Date:
The IPO journey initiates with the announcement of the open and close dates, demarcating the bidding window. Potential investors can participate by submitting their applications or bids during this specified timeframe.
2. Allotment Date:
The allotment date marks a pivotal moment in the IPO timeline. It is when the registrar of the IPO publicly discloses the allotment status, providing clarity on which investors have been successfully allocated shares.
3. Refund Date:
Subsequent to the closure of the bidding process, the application amount becomes frozen. Withdrawal of this amount is restricted. The refund date signifies the initiation of refund processes for applicants who did not secure an allocation in the IPO.
4. Credit to Demat Account Date:
The credit to Demat account date, varying across companies, is when applicants witness the addition of IPO shares to their Demat accounts. This crucial step occurs before the listing date, setting the stage for subsequent trading activities.
5. Listing Date:
The culmination of the IPO timeline occurs on the listing date, also known as IPO listing. This is the moment when the shares of the company are officially listed on the designated stock exchanges, ushering them into the secondary market for public trading.
Navigating the IPO timeline involves a series of orchestrated steps, from the initiation of bids to the listing of shares, encapsulating the entire journey of bringing a company into the public domain. Each stage holds significance in shaping the investor experience and contributing to the broader dynamics of the financial market.