Can We Apply for IPO After Market Hours?

An Initial Public Offering (IPO) is the process through which a company offers its shares to the public for the first time to raise capital. Investors can apply for an IPO during the IPO subscription period, which is the time when the company’s shares are available for subscription to the public. However, the question often arises: Can we apply for an IPO after market hours?

To answer this question, it’s important to understand how IPO applications work, the subscription timeline, and whether applications can be made outside of market hours.

1. Understanding the IPO Application Process

When a company decides to go public and issue an IPO, the company, along with its underwriters, announces the subscription period. The subscription period typically lasts for 3-5 days and is divided into:

Day 1 to Day N (final day): During this period, investors can apply for shares through different channels such as brokerage accounts, online IPO platforms, and banks.

1.1 Market Hours for IPO Applications

The Indian stock market operates from 9:15 AM to 3:30 PM from Monday to Friday, excluding public holidays. This is when the stock market is open, and trading takes place.
IPO applications through brokerage accounts, banks, or other online platforms are generally available during the market hours.

2. Can You Apply for an IPO After Market Hours?

Yes, you can apply for an IPO after market hours, but there are some important details to note:

2.1 Online Platforms and Brokerages

Many brokerages and online platforms allow investors to apply for IPOs 24/7, even after market hours. These platforms provide a convenient way to apply for IPOs online at any time during the subscription period. The application will be submitted and processed during the next market day.
For example, if you apply for an IPO after market hours (say at 8:00 PM), your application will be processed on the next business day when the stock market opens (9:15 AM).

2.2 Banks and Physical Applications

If you’re applying through banks or physically filling out IPO application forms, working hours may apply. These banks generally accept IPO applications only during banking hours (typically 9:30 AM to 4:00 PM) on weekdays.
If you submit a physical application or apply through a bank after working hours, the application will be processed on the next working day.

2.3 IPO Application Cut-off Time

Most IPOs have a cut-off time at 3:30 PM on the last day of the subscription period. This is the deadline for submitting IPO applications for that particular IPO. However, some platforms may allow you to apply after this time, but the application will only be considered for the next day or the following available time.

3. How Does the Application Process Work After Market Hours?

Here’s how the process works if you apply for an IPO after market hours:

Submission of Application: You submit your IPO application through an online platform, brokerage, or bank after market hours (say 6:00 PM).
Processing of Application: The application will be processed on the next available trading day (during market hours).
Allotment and Results: The allotment of shares and results will happen after the end of the subscription period, usually within a few days.

4. Summary of Key Points

You can apply for an IPO after market hours through online platforms or brokerage accounts, and the application will be processed on the next available market day.
Banking hours may apply if you are submitting physical forms or applying through a bank.
Cut-off time for IPOs generally ends at 3:30 PM on the last day of the subscription period, but platforms and brokers may have specific timings based on their policies.

5. Conclusion

Yes, you can apply for an IPO after market hours, especially if you’re using online platforms or brokerage accounts. Your application will be processed on the next available business day during market hours. However, for physical applications or bank-based applications, you will need to ensure you are within banking hours to submit your application.

It’s important to check the IPO subscription period and cut-off times set by the company and ensure you apply before the last day’s cut-off time to be eligible for allotment. Always double-check the application timings for the platform or bank you are using to apply.

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