Does this calculator predict the listing price?

No. You type the sell price. Nobody knows the listing price before the stock lists, and it can be below the issue price.

Does it use the grey market premium?

No. The grey market premium is an informal number from deals outside the stock exchanges, which no regulator oversees, and it is not a forecast of the listing price. This site does not show or use it.

Is selling IPO shares on the listing day intraday or delivery?

Delivery. The shares are already in your demat account, so the sale is a delivery sale: STT is 0.1% of the sell value and a DP charge applies.

How is tax on an IPO listing gain worked out?

Shares sold within 12 months give a short-term capital gain, taxed at 20% plus 4% cess. Brokerage and the other selling costs reduce the gain; STT does not.

What if I sell below the issue price?

There is no tax on the loss. A short-term capital loss can be set off against other capital gains, and carried forward for 8 years if you file your return on time.

IPO Listing Gain Calculator: Profit After Charges and Tax

Type the issue price, the lot size, the lots you got and a price to sell at. See the gain, every charge on the sale, and the tax if you sell within a year.

How to use it

Type the issue price: the final price per share at which the shares were allotted. It is fixed after the bidding closes, inside the price band, and appears in the basis of allotment.
Type the lot size and the number of lots allotted. In an oversubscribed IPO, a retail applicant who gets shares usually gets one lot.
Type a sell price to test. Nobody knows the listing price in advance, so try a few: one above the issue price, one at it and one below.
Leave Compare all brokers to see the cheapest of five brokers, or pick yours.

What selling IPO shares costs

Allotted shares reach your demat account before the stock lists, so selling them, even on the listing day, is a delivery sale. You pay:

STT of 0.1% of the sell value.
Exchange transaction charges of 0.00307% of the sell value at NSE, and the SEBI fee of ₹10 a crore.
A DP charge for moving the shares out of your demat account, once per stock per day, whatever the quantity.
Brokerage, if your broker charges it on delivery.
GST of 18% on the brokerage, the DP charge, the exchange charges and the SEBI fee.

There is no stamp duty on a sale: the buyer pays it. The charges are a small share of the sale, but on a single lot the DP charge and a flat brokerage are not tiny.

Worked example

Company ABC’s IPO has a price band of ₹285 to ₹300 and a lot of 50 shares. The issue price is fixed at ₹300 and you are allotted one lot: 50 shares that cost ₹15,000. Say you sell all 50 at ₹345, 15% above the issue price.

Sale value: 50 × ₹345 = ₹17,250, so the gain before charges is ₹2,250.
STT: 0.1% of ₹17,250 = ₹17.25.
Exchange charges ₹0.53 and SEBI fee ₹0.02.
At the cheapest of the five brokers here: no brokerage, a DP charge of ₹12.50, and GST of ₹2.35 on those.
Total charges: ₹32.65. You keep ₹2,217.35.

Across the five brokers in the calculator, selling these 50 shares costs between ₹32.65 and ₹65.10. The difference is the DP charge (₹12.50 to ₹20) and delivery brokerage (free at some brokers, up to ₹20 at others).

Tax on the gain

Shares sold within 12 months of allotment give a short-term capital gain, taxed at 20% plus 4% cess whatever your slab. The gain is the sale value less what the shares cost and the costs of selling, but STT cannot be deducted. In the example the charges other than STT come to ₹15.40, so the taxable gain is ₹2,250 − ₹15.40 = ₹2,234.60. The tax is ₹446.92 plus ₹17.88 cess, ₹464.80 in all, which leaves ₹1,752.55 after charges and tax.

Three things can change this. If your total income, including the gain, is below the basic exemption limit, part of the gain can be tax-free. Above ₹50 lakh of income, a surcharge is added. And shares held for more than 12 months give a long-term gain instead, taxed at 12.5% on long-term gains above ₹1.25 lakh in a year.

The price that covers the charges

The charges come out of the sale, so selling at the issue price loses a little. In the example the shares must sell at ₹300.61 or more just to get back the ₹15,000 they cost. Below that, the sale is a loss. There is no tax on a loss, and a short-term capital loss can be set off against other capital gains, with what is left carried forward for 8 years if you file your return on time.

Listing day

On the day a new stock lists, NSE and BSE first run a special pre-open session for it, a call auction in which orders are collected and one price is found that matches the most buyers and sellers. Normal trading in the stock starts at 10 am. The price from the auction is the listing price; it can be above or below the issue price, and the stock moves from there. This calculator does not guess it. Type the prices you want to compare.

Questions people ask

Does this calculator predict the listing price?: No. You type the sell price. Nobody knows the listing price before the stock lists, and it can be below the issue price.
Does it use the grey market premium?: No. The grey market premium is an informal number from deals outside the stock exchanges, which no regulator oversees, and it is not a forecast of the listing price. This site does not show or use it.
Is selling IPO shares on the listing day intraday or delivery?: Delivery. The shares are already in your demat account, so the sale is a delivery sale: STT is 0.1% of the sell value and a DP charge applies.
How is tax on an IPO listing gain worked out?: Shares sold within 12 months give a short-term capital gain, taxed at 20% plus 4% cess. Brokerage and the other selling costs reduce the gain; STT does not.
What if I sell below the issue price?: There is no tax on the loss. A short-term capital loss can be set off against other capital gains, and carried forward for 8 years if you file your return on time.

IPO listing gain calculator