Why doesn’t Zerodha offer pre-IPO orders?
Zerodha cannot provide pre-IPO orders because SEBI ICDR (Issue of Capital and Disclosure Requirements) regulations specify a designated subscription period during which orders can be placed. Pre-IPO orders are essentially bids, and allowing them would go against the spirit of the regulations.
Bids cannot be submitted to exchanges before the bidding window, and collecting pre-IPO bids by major intermediaries without public disclosure could delay the transfer of information. Allowing intermediaries to collect bids before an IPO undermines the significance of the book-building process. To learn more about book building, visit nseindia.com/products/content/equities/ipos/about_ipos.
Did you know? Intermediaries must disclose all IPO bids they receive to the exchanges, and the exchanges publish them on their websites in real time. This allows the public to see the subscription demand for ongoing IPOs.