When a company lists on the stock exchange after its IPO, the first day of trading works a little differently from a regular trading day.
Pre-open session: 9:00 AM – 10:00 AM
On listing day, the stock goes through an extended pre-open session from 9:00 AM to 10:00 AM it is longer than the regular 15-minute pre-open. During this window, buyers and sellers place orders and the exchange determines the listing price through a call auction, finding the price at which the maximum number of shares can be traded.
Regular trading: 10:00 AM – 3:30 PM
Once the pre-open session ends, the stock enters the regular trading session and trades normally for the rest of the day.
Price bands on listing day
No upper or lower circuit limits apply on the listing day. From the second day of trading onwards, standard circuit filters kick in.
If you are planning to trade a stock on its listing day, keep the 9:00 AM – 10:00 AM window in mind the listing price is set during this period, and regular trading only begins at 10:00 AM.
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