Why doesn’t Zerodha offer pre-IPO orders?
Zerodha doesn’t offer pre-IPO orders because SEBI ICDR regulations provide a subscription period for an IPO during which orders are placed. Pre-IPO orders are technically bids and are, in essence, against the spirit of the regulations.
Exchanges don't allow bids to be sent to them before the bidding window. Large intermediaries collecting pre-IPO bids and not disclosing them publicly may lead to delay in the transfer of information. If intermediaries collect bids before IPO, the importance of the book-building process is lost. Visit nseindia.com/products/content/equities/ipos/about_ipos to know more about book building.
Did you know?
All IPO bids received by intermediaries are required to be disclosed to the exchanges, which are published on their website on a real-time basis. This enables the public to view the subscription demand of ongoing IPOs.