(Last Updated: June 13, 2019)
Get Zerodha Account
Get Zerodha Account

What is an IPO or Initial Public Offering?

  • @ishu Nice explanation 🙂 Yes, Prospectus contains ample amount of information about the company's financial details. Primarily, as a retail investor, we can know the objective of issuing IPO. Why the company has issued this IPO? PE ratio and Return on equity are few techniques used to judge the valuation and position.

  • @harleen I really get confused which IPO to go for? I am not from a financial background so analysing the company financial details seems a bit difficult. Yes, but I can understand the basics by reading the prospectus. Is there an easy way to know which IPO to invest? Any feedback on it.

  • Thank you for sharing such interesting facts and the precautions to be taken by the investors with an Initial Public Offering (IPO).Retail investors might find it difficult to invest with the IPO.Because they have the thinking that the company is going public due to the lack of funds and it is a risk to invest in it now.

  • @harleen I like direct investing in stocks. I know that's risky. But, I invest only the excess amount I have. I haven't opted the IPO route.

  • Hi, Yes direct stock market investing and trading suits investors willing to take some risk. You can see huge fluctuations in stock prices owing to different factors. So, one need to be very cautious before stepping into the stock market. If you are not satisfied and wish to play safe only, then better look for risk free investment options.

  • I believe that an IPO is the best way to protect the company in terms of financial aspect. What do you think guys? Have you ever invested in an IPO? An IPO is suitable to investors who are willing to take some risk.

  • @Harleen There are so many IPOs. I am interested in investing in them. But, I usually get confused searching information. So, avoid putting money in them. Nice to have useful general information about IPOs here.

  • @Harleen Is there any upcoming IPO to consider? I am keen of investing in IPOs. So, keep looking for good ideas to invest in different IPOs in India. Any feedback on it.

  • This post is deleted!

  • @Harleen In simplest terms, when a Private company goes Public i.e. it offers its shares to public for the first time. And, raises investment capital in return. So, basically the owners of the company give apart of their ownership to the shareholders. Right!

  • Initial Public Offering (IPO) also known as “going public” is a complex decision which calls for appropriate planning and careful consideration.

    It’s a process wherein a privately held company for the first time, issues its stock to the public. IPO is a dream for many small businesses as it transforms a private company into a public entity thereby helping the company get exposure and improved credibility.

    IPO financing is crucial when a private company seeks to take its business to the next level. With IPO financing, the company becomes a part of the stock market whose shares are made available to the general public for investment.

    Therefore, a significant reason why people opt for IPO financing is for growth and expansion. However, founders or venture capitalists may always influence this decision if they are eager to cash out on their investment.

Get Zerodha Account
  • 3
  • 3
  • 1
  • 1
  • 5
  • 2
  • 1
  • 27
Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.