How To Sell IPO Shares Online: Step-By-Step Guide

When a private company offers its shares to the public for the first time through an Initial Public Offering (IPO), it creates a lot of buzz in the stock market. Many people apply for IPO shares, hoping to make quick profits or hold them for long-term gains. But once the shares are allotted, a common question arises: how to sell IPO shares?

This article will help you understand everything you need to know about selling IPO shares. 

What is an IPO?

IPO shares are the company shares that are offered to the public for the first time when a private company becomes public. This process is known as an Initial Public Offering (IPO). Investors apply for shares during the IPO subscription period, and if they get allotted, these shares are credited to their demat account.

These shares then become available for trading on the stock exchange from the IPO listing day. From this point onward, you can decide to hold them or sell them, depending on your investment goals and the market trend.

Factors To Consider Before Selling the IPO Shares

Before you decide to sell your IPO shares, it’s a good idea to think about a few important things. This can help you make the right choice and avoid selling too early or too late.

1. Listing price vs. IPO price: Check how the stock is doing on the listing day. If the price is much higher than the price you paid during the IPO, selling can give you a good profit. But if it’s lower, you may want to wait.
2. How strong the company is: Look at how well the company is doing. Is it making profits? Does it have plans to grow? If the company is strong, holding the shares for the long term might give you better returns.
3. Any lock-in period: Most regular investors don’t have to worry about a lock-in period, but it’s still good to double-check if there are any rules stopping you from selling your shares right away.
4. Your financial goals: Ask yourself—why did you invest? If you were looking for quick profits, selling on the listing day might make sense. But if you’re saving for the future, holding the stock could be a better option.
5. Tax implications: IPO profits are taxable. If you’re selling your IPO shares early, then you’ll have to pay short-term capital gains tax, but selling after a year can reduce your tax liability. 

What Is the Process of Selling IPO Shares?

Once your IPO shares are allotted and credited to your demat account, you might be ready to sell them, especially if they’re listed at a higher price. Thankfully, the process is quick and easy, especially when done online.

Here’s a simple step-by-step process explained to help you sell IPO shares online:

• Wait for the listing day: You can only sell IPO shares after they are listed on the stock exchange, which usually happens a few days after allotment.

• Log in to your trading account: Use your stockbroker’s mobile app or website to log in. Make sure your trading and demat accounts are linked.

• Go to your holdings: Once the IPO shares are listed, they’ll show up in your holdings or portfolio section.

• Choose the share you want to sell: Select the IPO share you want to sell. You’ll see details like quantity, current market price, and average purchase price.

• Place a sell order

1. 1. Enter the number of shares you want to sell.
   2. Choose the type of order:

• A market order sells your shares immediately at the prevailing market price.
• A limit order allows you to specify the minimum price at which you’re willing to sell. Your shares will only be sold if the market price reaches or exceeds your chosen limit.

• Confirm and submit: Review your order and confirm it. Your shares will be sold during live trading sessions, and you’ll get a confirmation once the trade is completed.
• Receive payment: The sale amount will be credited to your bank account within two working days after the trade.

And that’s it! Whether you’re aiming for listing gains or planning to sell later, now you know how to sell IPO shares online in a convenient way.

How To Sell IPO Shares Online?

If you’re wondering, “How can I sell IPO shares?” the process is actually quite straightforward once the company is listed on the stock exchange. All you need is an active trading account. Here are some simple strategies to help you:

• Sell on the listing day: Most IPOs perform well on the first day of listing. If the stock shows strong demand in the pre-market session (like 70–80% gains), you can sell it on the same day to book quick profits.
• Sell some, hold some: To recover your investment and still stay invested, sell a part of your shares. For example, if you have 150 shares and the price goes up, sell around 100 to recover your money and keep the rest for future growth.
• Sell in small parts: Instead of selling all at once, sell in small parts after each quarterly result. This helps you track the company’s performance and make better decisions.
• 50-10 strategy: Sell 50% of your shares soon after listing to recover your cost. Then, sell 10% every quarter based on how the company is doing. This gives you a balanced way to earn and stay invested.

When To Sell IPO Shares?

One of the most common questions investors ask is: When is the right time to sell IPO shares? The answer depends on your goals:

• On listing day: If the share opens at a much higher price, many investors prefer to sell IPO on listing and book quick profits. This is called listing gains.
• Short-term holding: You may hold for a few weeks if you expect the price to rise more based on company performance or market sentiment.
• Long-term investment: If the company has strong fundamentals and growth potential, consider holding for the long term.
• During lock-up periods: Some IPOs have a lock-up period (mainly for promoters or employees), during which shares can’t be sold. However, retail investors usually don’t have this restriction.

Top Upcoming IPOs to Watch (23rd–27th June 2025)

1. Kalpataru Ltd IPO
2. HDB Financial Services Ltd IPO
3. Globe Civil Projects Ltd IPO
4. Ellenbarrie Industrial Gases Ltd IPO
5. Suntech Infra Solutions Ltd IPO

Conclusion

Selling IPO shares is not as complicated as it seems. Whether you’re selling your shares on IPO listing day or planning to hold for future gains, understanding the process and timing can help you make better financial decisions.

Looking to participate in the next big initial public offering? Begin by opening an online demat account with Torus Digital today.

Frequently Asked Questions