Initial public offerings (IPOs) in India: notes for bank exams

At a glance

An initial public offering (IPO) is the first time a company sells its shares to the public and lists them on a stock exchange (NSE and BSE in India). The shares on offer can be new shares, which raise money for the company, existing shares sold by current owners, or a mix. SEBI regulates IPOs under its Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018.

Key facts

Regulator: SEBI, under the SEBI (ICDR) Regulations, 2018
Fresh issue: new shares; money goes to the company
Offer for sale (OFS): existing shareholders sell; money goes to them, not the company
Pricing methods: book building (price band) or fixed price
Price band: cap can be at most 120% of the floor price
Bidding period: at least 3 working days
Listing timeline: T+3 (three working days after issue closes), mandatory since 1 December 2023
Payment: ASBA (Application Supported by Blocked Amount); UPI mandate allowed for individual bids up to ₹5 lakh
Largest Indian IPO: Jio Platforms, ₹30,213 crore (October 2026)
Previous record: Hyundai Motor India, ₹27,870 crore (October 2024)

How it works

Steps. The company appoints merchant bankers, files a Draft Red Herring Prospectus (DRHP) with SEBI, gets SEBI's observations, files the Red Herring Prospectus (RHP) with the Registrar of Companies, announces a price band, takes bids, fixes the final price, allots shares and lists.

Book-built issue: who gets what (company meeting profitability conditions).

Category	Share of the issue
Qualified Institutional Buyers (QIBs)	Not more than 50%
Non-Institutional Investors (NIIs, over ₹2 lakh)	Not less than 15%
Retail Individual Investors (up to ₹2 lakh)	Not less than 35%

Companies that do not meet the profitability track record must give at least 75% to QIBs, with retail capped at 10%.

Anchor investors. Up to 60% of the QIB portion can go to anchor investors, who bid one working day before the issue opens with a minimum application of ₹10 crore. Half their shares are locked in for 30 days and the rest for 90 days. Since late 2025, 40% of the anchor book is reserved: one-third of it for domestic mutual funds and the rest for life insurers and pension funds.

Largest Indian IPOs.

Company	Size (₹ crore)	Year
Jio Platforms	30,213	2026
Hyundai Motor India	27,870	2024
LIC	20,557	2022
Paytm (One97)	18,300	2021

Recent developments

28 Oct 2026 (scheduled): Jio Platforms to list on NSE and BSE after a ₹30,213 crore all-fresh-issue IPO (price band ₹1,065–1,119; bidding 21–23 October), the largest in India.
19 Oct 2026: Jio Platforms raised about ₹8,110 crore from 212 anchor investors.
Nov 2025: SEBI amended ICDR anchor rules, reserving part of the anchor book for life insurers and pension funds alongside mutual funds.

Exam traps

In an OFS the company receives nothing; only a fresh issue adds to its capital.
Retail investors can bid up to ₹2 lakh; above that they count as NIIs (HNIs).
T+3 is the time from issue closure to listing, not the bidding period.
A "red herring" prospectus has no final price; the final prospectus does.
An IPO is the first public issue; a later public issue by a listed company is an FPO.

Quick check

Q: Under which SEBI regulations are IPOs governed? A: ICDR Regulations, 2018.
Q: What is India's largest IPO? A: Jio Platforms, ₹30,213 crore (2026).
Q: What is the maximum share of the QIB portion that can go to anchor investors? A: 60%.

Initial public offerings (IPOs) in India