IPO
IPO

IPO Basics

If you are a share market enthusiast you must have heard about IPO investment. The process of new stock issuance to propose the shares of a private entity to the public is called Initial Public Offering (IPO).

An Initial Public Offer (IPO) is when an unlisted company issues shares to the public. The IPO can either be through an issue of fresh shares or the existing shareholders may be selling part of their stake to the public.

An Initial Public Offer (IPO) is when an unlisted company issues shares to the public. The IPO can either be through an issue of fresh shares or the existing shareholders may be selling part of their stake to the public.

The IPO process begins with the filing of the Draft Red Herring Process (DRHP) and ends with the listing of the stock on the stock exchanges.

There are different reasons for investing in an IPO of a company in a stock market. The most common reason is that you can actually make money on listing so effectively that you can roll your money quite fast.

An IPO application has to be preceded by a thorough understanding of the company and the IPO process before it is presented in the stock market for general public.

An Initial Public Offering (IPO) is when an unlisted company issues shares either by way of fresh issue of securities or by way of sale of existing securities to the general public.

What is Initial Public Offering (IPO)?

If you are a share market enthusiast you must have heard about IPO investment. The process of new stock issuance to propose the shares of a private entity to the public is called Initial Public Offering (IPO). The issuance of IPO stocks to the public empowers a company to heighten up capital from public investors.

Such an event is profoundly speculated by media, share market geeks and investors in general. For private investors, the transition of a private to a public company is a crucial event that helps them to achieve the profits wholly from their investment as it customarily involves share premiums for them, while it also helps public investors to engage in and enjoy the offering.

Why should you invest in an IPO?

AS A RETAIL INVESTOR YOU STAND A BETTER CHANCE OF ALLOTMENT

When a private company decides to collect funds via an IPO route, it happens after a thoughtful, well-strategized opinion and review that this kind of exit strategy would maximize the profits of initial investors and grow the best possible capital for the business. So, it makes a better chance for investors to apply in the retail segment of an IPO making the possibilities of future growth higher. It attracts first-time investors bringing maximum people into the equity sector.