Yes! one can sell the shares that were allotted to them in the IPO of the company on the date of listing itself. On the other hand if one had the shares before the IPO through ESOPS or any other method then there is a Lock-In period of 1 year from the date of listing of the company before which they cannot sell the shares.
IPO-
An IPO (Initial Public Offering) is a process through which a company sells some part of its stake in the form of shares and gets itself listed on the Stock Exchanges. A company can also come up with an IPO to raise capital from the investors to fulfill any financial goal of the company, to Reduce Debt, etc.
There are 2 types of Shares that one individual can own, they are-
- Pre IPO shares
- Post IPO shares
1.Pre-IPO Shares- Pre IPO shares are the stocks of the company that were bought from the primary market before the IPO of the company happened. These types of shares can be acquired from ESOPS or other methods. These types of shares have a Lock-In period of 1-year post the IPO of the company. One can only sell any Pre-IPO shares after 1 year from the date of listing.
2.Post IPO Shares- In a second way, an individual can own shares of the company from the Primary directly from the company through an IPO. If a Retail investor has been allotted the shares in an IPO then the investor can sell the shares on the date of listing if one wants to. There is no Lock-in period on these shares that are allotted in an IPO.
Conclusion- If an individual has received any number of shares in an IPO then they can sell any number of shares on the listing date itself. There is no lock-in on shares received in an IPO, whereas if they own the shares from before the IPO then they cannot sell those shares up to 1 year from the date of Listing of that particular company.