Launching an IPO is not a one-day event; it is a long-distance marathon. For a company, it’s the ultimate transformation from being a private entity often owned by a few founders and investors to being owned by the general public across India. This journey is strictly governed by the Securities and Exchange Board of India (SEBI) to ensure that every detail is transparent and every investor's interest is protected.

The IPO Cycle refers to the entire lifecycle of this transition, starting from the first boardroom decision to the moment the stock starts ticking on the exchange screens. In 2026, this cycle has become faster and more digital than ever before. For an investor, understanding the stages of this cycle is like reading a roadmap; it tells you exactly when the hype starts, when the facts are out, and when you can finally buy or sell your shares.

The 7 Stages of the IPO Cycle

A typical IPO cycle in India can take anywhere from 6 to 12 months from start to finish. Here is how the journey unfolds:

1. The Planning Phase (Pre-IPO)

The company’s board decides it’s time to raise big capital. They hire Investment Bankers (also called Book Running Lead Managers) who act as the architects of the IPO. They study the company’s janampatri (financials) and decide how much the company is worth.

2. Drafting the DRHP

The company files a Draft Red Herring Prospectus (DRHP) with SEBI. This is a massive document containing every tiny detail about the business, its risks, and why they need the money. SEBI then reviews this for about 2 to 4 months.

3. The Roadshow (Marketing)

Once SEBI gives its Observation Letter (approval), the company goes on a Roadshow. The bosses travel to meet big institutional investors (like Mutual Funds and Banks) to sell the story and generate excitement.

4. Filing the RHP & Setting the Price

The final version, the Red Herring Prospectus (RHP), is filed with the Registrar of Companies (RoC). The company and bankers then announce the Price Band (e.g., ₹450 to ₹475).

5. The Subscription Window

The IPO finally opens for the public!

Timeline: Usually stays open for 3 to 5 working days.
Process: You place your bid using ASBA (Application Supported by Blocked Amount), meaning your money stays in your bank account but is blocked until allotment.

6. Allotment & Refunds

After the window closes, the Registrar counts the bids. If the IPO is oversubscribed (too much demand), a lottery system is used to decide who gets shares.

The 2026 Rule: Refunds for those who didn't get shares happen almost instantly.

7. The Listing (The Grand Finale)

This is the day the shares officially start trading on the NSE/BSE. In 2026, India follows the T+3 Listing Timeline, meaning the company must list within just 3 working days of the IPO closing.

IPO Cycle Timeline 2026 (Standard Mainboard)

Phase

Duration (Approx.)

Key Stakeholder

Preparation & Due Diligence

4–6 Weeks

Lead Managers & Lawyers

SEBI Review (DRHP)

8–12 Weeks

SEBI

Marketing / Roadshows

1–2 Weeks

Company Management

Public Bidding Period

3 Working Days

Retail & HNI Investors

Allotment Decision

T + 1 Day

Registrar

Listing on Exchanges

T + 3 Days

NSE / BSE

Frequently Asked Questions (FAQs)

What is the difference between DRHP and RHP?

The DRHP is a draft for SEBI to check. The RHP is the final version for the public that includes everything except the final price and dates.

Can SEBI reject an IPO application?

Yes, If SEBI finds that the company is hiding risks or has shady financials, it can ask for major changes or even stop the IPO.

What is a Cooling-Off Period ?

It is the time after filing the DRHP when SEBI scrutinizes the company. During this time, the company must be careful not to over-hype itself in the media.

Why is the T+3 timeline important?

Earlier it was T+6. T+3 is better because it reduces the time your money is stuck and allows you to trade or get your refund much faster.

What is an Anchor Investor?

These are big institutions like Mutual Funds that buy shares one day before the public IPO opens. It gives regular investors confidence that the big players like the company.

Do I get interest on the blocked money in my bank?

Yes! Since the money stays in your account during the IPO cycle (it is only blocked, not debited), you continue to earn your regular savings bank interest.

Can I withdraw my bid once placed?

Yes, as long as the subscription window is still open. Once it closes, you cannot withdraw or change your bid.

What is a Basis of Allotment?

It is the document that explains how the shares were distributed among the thousands of applicants, especially when the IPO is oversubscribed.

Is the Listing Day always the end of the cycle?

For the IPO process, yes. But for the company, it’s the start of a Post-IPO life where they must report their results every 3 months.

What is a Price Band?

It is the range within which you can bid. You usually bid at the Cut-off Price (the highest price) to increase your chances of getting the allotment.

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