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June 14, 2026
The Dispatch

Definition

Pre-open Session (IPO)

The pre-open session is a special call-auction at the start of listing day that discovers the opening price of a newly listed IPO share.

Before normal trading begins on listing day, the NSE and BSE run a pre-open session in which buy and sell orders are collected and matched to determine a single equilibrium opening price. This call auction prevents a chaotic open and reflects aggregated demand and supply.

For IPOs, the pre-open session is when the much-watched 'listing price' is set, which determines listing gains or losses against the issue price. After the session, the stock trades continuously, subject to special price bands for newly listed securities.

Related terms

  • Listing DayListing day is the first day an IPO's shares are admitted to trading on the stock exchange.
  • Listing GainListing gain is the profit an investor makes when an IPO share lists on the exchange above its issue price.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.