An IPO transforms a private company into a publicly listed one. It is governed by SEBI's ICDR (Issue of Capital and Disclosure Requirements) Regulations, 2018.
IPO Process in India
- Company appoints lead manager (merchant banker)
- Files Draft Red Herring Prospectus (DRHP) with SEBI
- SEBI review (typically 30 days)
- Roadshow and price band announcement
- Subscription period: 3 days (retail, QIB, HNI categories)
- Basis of allotment (lottery for oversubscribed retail)
- Listing on NSE/BSE within T+6 days from close
Reservation Categories
- QIB (Qualified Institutional Buyers): ≥75% of issue (for book build)
- Non-Institutional Investors (HNI): ≥15%
- Retail Individual Investors (RII): ≥10%