How to Sell IPO Shares Purchased Using ICICI Direct

Selling shares that you bought during an Initial Public Offering (IPO) through ICICI Direct is a straightforward process that involves several key steps. This detailed guide will walk you through the process from logging in to your account to completing your sell transaction and receiving your proceeds.

Steps to Sell IPO Shares on ICICI Direct

Log in to Your Account

To sell your IPO shares, you must first log in to your ICICI Direct account. Here’s what you need to do:

Visit the ICICI Direct website or open the ICICI Direct app. Login using your credentials, including your user ID and password.

Check Your Holdings

After logging in, you need to review your current holdings to find the IPO shares you wish to sell:

Navigate to the Demat Account section in your dashboard. Check the number of IPO shares that are currently in your demat account. Ensure that the shares you want to sell are showing as 'Available for Trade' in your demat holding.

Select the Shares to Sell

Identify the specific IPO shares you wish to sell. You can:

Select the checkbox next to the shares or find them directly in your portfolio. Choose the quantity and price at which you want to sell your shares. Decide on the order type, whether it’s a limit order or a market order.

Initiate the Sell Transaction

To initiate the sell transaction, follow these steps:

Look for the Sell option in the menu or interface. Select the share you want to sell and input the Order Details, such as:

Enter the Order Details

Quantity: Enter the number of shares you wish to sell. Order Type: Choose between a Limit Order or a Market Order. A Limit Order allows you to set a specific price at which you want to sell, while a Market Order will sell your shares at the current market price. Validity: Select the order validity, such as Day IOC (Immediate or Cancel) or other options like GTC (Good Till Cancel).

Review Your Order

Before finalizing your sell order, double-check the details:

Ensure the correct number of shares and order type are selected. Review your IPO shares and the price at which you want to sell them.

Place the Order

If all details are correctly entered, click on the Place Order button. Your sell order will then be executed:

Your IPO shares will be debited from your demat account. The sale proceeds will be credited to your trading account within 3 business days, typically T2 days from the transaction date plus two business days.

Confirmation and Settlement

After placing your order, you will receive a confirmation of the transaction. You can monitor the status of your sell transaction through your ICICI Direct account. Settlement of the proceeds occurs within 3 business days:

Your proceeds will be credited to your trading account. You can withdraw this amount to your bank account during the settlement period.

Additional Tips

Market Conditions

Be aware of the market conditions when selling your IPO shares. Market fluctuations can affect the selling price, so it’s important to monitor the market closely.

Tax Implications

Consider any tax implications of selling your IPO shares, especially if you are selling them shortly after the IPO. You should consult with a financial advisor or tax professional to understand the specific tax implications in your jurisdiction.

Holding Period

If you are selling within a short period after the IPO, check if there are any lock-in periods or restrictions. Some IPOs require shareholders to hold their shares for a certain period, and selling prematurely could incur penalties or additional costs.

In case you encounter any issues or have specific questions about your account, it’s always advisable to contact ICICI Direct’s customer support for assistance.