The listing date is the date when a company’s shares first begin trading on a stock exchange. It is the date when investors can buy and sell shares in the open market. This date is significant for the company as well as investors since it decides the performance of the stock after the initial public offering (IPO).
How the Listing Date Works
Any company going public must file its papers with the Securities and Exchange Board of India (SEBI). The draft red herring prospectus (DRHP) contains important details about the company’s business and finances. After getting an approval, the company receives an official date on which the share can be made available for trading.
Key Points to Remember
Here are some points that the companies planning to go public should remember:
- SEBI Approval: A company’s listing date is set after the SEBI reviews its documents, usually within 30 days.
- Pricing Decision: A day before the listing, the company and its underwriters decide how many shares will be sold and at what price.
- First Trading Day: On the listing date, shares become available for investors to buy and sell on the stock exchange.
Conclusion
Listing date is an important event for those companies who are entering the stock market. It is also an important date for the investors looking for new opportunities. It signals that a new stock journey has begun in public trading. Investors interested in investing should keep a track of all the listing dates as it can help them find new stocks just when they become available.