What is IPO (Initial public offering)?

Discover the basics of IPO and why companies go public.

What is an IPO

An IPO is the process by which a private company becomes a publicly traded company by issuing stocks to the general public for the first time

Purpose of IPO

Companies go public to raise capital for expansion, reduce debt, and gain visibility

How IPOs Work

The company files a registration statement with the relevant regulatory body (SEBI in India)

Benefits for Companies

Access to more capital, increased market exposure, and the ability to attract better talent

Benefits for Investors

Investors can buy shares early, potentially benefiting from the company's growth

Risks Involved

IPO investments can be volatile; the company's future performance is uncertain

An IPO is a major milestone for a company, offering growth opportunities and risks alike