What is an IPO or Initial Public Offering?
Harleen last edited by Harleen
IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time. The name of the Company gets listed on stock exchange. It can be a new company or an old company that thinks of going public by selling its shares.
Reasons for raising IPO by companies:
- Raise funds for expansion of its business and services, invest in infrastructure or repay loans etc.
- Increase liquidity
- Adds to its credibility
- Open new doors for mergers and acquisitions
As an investor, you should keep in mind the following points while putting your money in an IPO:
- Check the Red Herring prospectus for the IPO details and fund utilisation plans.
- Be cautious and go through the fine prints before putting money.
- Analyse the credit background and company's financial performance.
You don't have to become a financial expert. Just get a brief idea of the basics to make yourself financially aware of where you are investing your money.
LandPel last edited by
IPO (Initial Public Offering) is a great way of raising funds by a private comapny from the public sector for the first time. It helps the buainess to elaborate and widen its wings in its respective field. A challenging way as well, as it is really difficult to attract people for investments.
Arribe Banned last edited by ftForumMod
IPO or Initial Public Offering is an excellent way of involving the mass public within your company. This is a good way of expanding your horizons. The money generated through it can be used for expanding the companies operations. But before launching an IPO, the PR team needs to run a strong campaign.
Jass last edited by
@arribe Any idea how to select a good IPO? We hear of so many new IPOs but get confused which one to select. As a retail investor, what crucial points one needs to consider before putting money in IPOs? Any experiences you can share.
Aarav last edited by ftForumMod
@harleen As a retail investor, choosing an IPO seems to be a difficult task especially for me. Company raises funds through an IPO. But, it's not easy to select the best IPO. I have heard that one needs to be cautious while putting money in IPOs. Is it true and to what extent? Not every IPO is a good choice. So, how to decide which IPO to subscribe? If an IPO is oversubscribed on day 1 does that mean its doing fairly good? I have very less idea on IPOs, mentioned what info I have gathered from friends. Can anyone guide in this.