The IPO process at a glance
| Stage | What happens | Who is involved |
|---|---|---|
| 1. Preparation | Board approves the IPO; lead managers, lawyers and registrar appointed | Company, lead managers |
| 2. DRHP filed | Draft offer document filed and made public for comments | SEBI or the SME exchange |
| 3. Review | Regulator asks questions; company answers and updates the draft | SEBI or the exchange |
| 4. Observations | SEBI issues observations; the clock of 12 months starts | SEBI |
| 5. RHP filed | Updated document filed with the Registrar of Companies | Company, exchanges |
| 6. Price band | Band and lot size announced at least two working days before opening | Company, exchanges |
| 7. Anchor day | Large institutions bid one working day before opening | Anchors |
| 8. Bidding | Open to the public for 3 to 10 working days | All investors |
| 9. Allotment and listing | Allotment on T+1, money and shares on T+2, listing on T+3 | Registrar, exchanges |
The first five stages can take months. The last four take about a week and a half. Retail investors usually hear about an IPO only at stage 6, but the documents from stage 2 are public long before that.
Stage 1: preparation
A company decides to go public, usually to raise money for growth or to repay debt, or to let existing shareholders sell. Its board approves the plan, and it appoints book running lead managers, the investment banks that run the issue.
The company also appoints a registrar, which will later process applications and run the allotment, and lawyers who prepare the disclosures. Its accounts are audited and restated for the offer document.
Stage 2: filing the DRHP
The company files a draft red herring prospectus (DRHP). For a mainboard IPO it goes to SEBI; for an SME IPO, to NSE Emerge or BSE SME. It also applies to the exchanges for in-principle approval to list.
The DRHP is made public for at least 21 days so anyone can comment. It is on the SEBI and exchange websites. Read DRHP vs RHP for what each document contains.
Some companies use the pre-filing route instead. They file the draft confidentially, and the public sees an updated draft only after the first review. For this route, SEBI’s observations stay valid for 18 months.
Stages 3 and 4: review and observations
SEBI reads the draft and sends questions to the lead managers. The company answers and updates the document. The review checks that the disclosures are complete and clear. It does not judge whether the business is good or the price fair.
When it is satisfied, SEBI issues its observations. The company must open the IPO within 12 months of that date, or file afresh. Our DRHP pipeline tracks where each filed draft stands, from SEBI’s weekly status reports. Some drafts are returned by SEBI, and some companies withdraw them; both are listed there too.
Stage 5: the RHP
Once the company decides to launch, it files the red herring prospectus (RHP) with the Registrar of Companies and the exchanges. It reflects SEBI’s observations and the latest financials.
The RHP has everything except the final price and number of shares. It is the document every fact on our IPO pages comes from. Read how to read an RHP for the sections that matter most.
Stages 6 and 7: price band and anchor day
The company announces the price band and lot size at least two working days before the issue opens. Read what a price band is.
For mainboard issues with an anchor portion, anchor investors bid one working day before the issue opens. The allocation to each anchor is announced to the exchanges that day. Read what anchor investors are.
Stage 8: bidding
The issue is open to the public for at least three and at most ten working days. If the price band is revised, bidding is extended by at least three working days, within the same ten-day limit.
You apply through your broker’s app or bank, and approve a UPI mandate by 5 pm on the last day. Read how to apply for an IPO. NSE and BSE publish subscription by category through the bidding days.
Stage 9: allotment and listing
Under SEBI’s T+3 timeline, counted in working days from the closing day:
- T+1: the registrar finalises the basis of allotment with the exchange.
- T+2: money is debited for allotted shares, the rest is released, and shares reach demat accounts.
- T+3: the shares list and start trading, after a special pre-open session.
After pricing, the company files the final prospectus with the Registrar of Companies. Read the T+3 listing timeline for the cut-offs on each day.
Who does what
Several firms keep the process running, and their names are in the RHP:
- Book running lead managers prepare the documents, answer SEBI’s questions, market the issue and set the price with the company.
- The registrar receives applications from the exchanges, removes invalid ones, runs the allotment and handles complaints afterwards.
- The sponsor bank carries UPI mandate requests between the exchanges and your bank.
- Self-certified syndicate banks block and release money for ASBA applications.
- The stock exchanges run the bidding platform, publish subscription and approve the basis of allotment.
If something goes wrong after you apply, the registrar is usually the first contact.
A worked example
Bombay Coated and Special Steels filed its RHP on 21 October 2026. The dates below are from that RHP and the exchange notices. Dates after closing are expected dates on the T+3 rule.
| Stage | Date |
|---|---|
| RHP filed | Wednesday, 21 October 2026 |
| Price band announced | At least two working days before opening |
| Anchor day | Wednesday, 28 October 2026 |
| Bidding opens | Thursday, 29 October 2026 |
| Bidding closes (T) | Monday, 2 November 2026 |
| Allotment (T+1) | Tuesday, 3 November 2026 |
| Money and shares (T+2) | Wednesday, 4 November 2026 |
| Listing (T+3) | Thursday, 5 November 2026 |
From RHP to listing took just over two weeks. The DRHP and SEBI’s review came months earlier, and the draft was public for comments well before any investor could bid. Reading it early leaves time to understand the business before the bidding window opens.
After listing
The process does not end at listing. Three things follow:
- Lock-ins end on set dates. Half of anchor shares are free after 30 days and the rest after 90 days. Promoter shares are locked in longer.
- Use of money is reported. Where required, a monitoring agency reports how the IPO money is being used against the objects in the RHP.
- Ongoing disclosures. The company now reports results every quarter and announces material events to the exchanges.
Common mistakes to avoid
- Reading only the price band announcement. The RHP has the risks, the financials and the use of money.
- Treating SEBI’s observations as approval of the price. SEBI checks disclosure, not value.
- Ignoring the DRHP. It is public months before the IPO, and early reading saves a rushed decision.
- Assuming a filed DRHP means an IPO is coming. Many companies delay, and some never launch.
- Forgetting that dates can change. A price band revision extends bidding and moves every later date.
What to do next
Track drafts on our DRHP pipeline and dates on the IPO calendar. Then read about listing day and the special pre-open session, the last step of the process.
Sources: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: Regulation 26 (filing and public comments on the draft), Regulation 44 (validity of SEBI's observations), Regulation 46 (bidding period) and Schedule XIII (book building); SEBI circular of 7 Apr 2026 on the validity of SEBI observations: 12 months under Regulation 44(1) and 18 months for the pre-filing route under Regulation 59C; SEBI circular SEBI/HO/CFD/TPD1/CIR/P/2023/140, 9 Aug 2023: the T+3 listing timeline; Bombay Coated and Special Steels RHP dated 21 Oct 2026, for the dated example.
Frequently asked questions
How long does the IPO process take in India?
From filing the DRHP to listing, usually several months. SEBI's review alone often takes a few months, and after SEBI's observations the company has up to 12 months to open the issue. The public part, from opening to listing, takes about a week.
Who approves an IPO in India?
SEBI reviews the draft for mainboard IPOs and issues observations. For SME IPOs, the SME exchange reviews it. The exchanges also give in-principle approval to list. Neither approves the price or vouches for the company.
What is the difference between the DRHP and the RHP?
The DRHP is the draft filed for review. The RHP is the updated document filed with the Registrar of Companies before the issue opens. It has everything except the final price and number of shares.
When is the price band announced?
At least two working days before the issue opens, through an announcement to the exchanges and an advertisement in newspapers.
Can an IPO be delayed after SEBI's observations?
Yes. The company can open the issue at any time within 12 months of SEBI's observations. Many companies wait for better market conditions, and some let the observations lapse.
What happens after listing?
The company reports on how it uses the IPO money, and lock-ins on promoter and anchor shares end on set dates. The shares trade like any other listed share.