(Last Updated: May 4, 2020)
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What is an IPO or Initial Public Offering?

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  • @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.

  • If you are looking for better opportunities to buy shares of a company before they go public, then Initial Public Offering or IPO is the ideal option. What is IPO account? It is an accessible mode of investment as your wealth grows manifold within a short time.

    The next thing to do in IPO account is subscribing for one.

    How to invest in IPO? Account Opening Process:
    For this reason, you need to follow the mentioned steps:

    • Obtain a follow-on public offer application form. It is available for share brokers, lead managers, syndicate members, and collecting banks.

    • The physical copy is available at major commercial streets in most towns. They are also available outside BSE.

    • In case of fixed-rate prices, you must deposit the duly filled application form, demand draft or cheque for the desired amount.

    • The names and addresses are present in the application form. Remember, applications get accepted if payment is done through DD or cheques.

    • Before submission, screen the application, as any typo could reject your application.

    • You could also apply for IPO through your trading or bank account. Some banks have a 3-in-1 deal where you can open bank, trading, and Demat Account in one place.

  • All companies have to start somewhere, and often, it involves having the founders invest a chunk of their own money in the hopes of eventually growing the business. But as small, private companies start to gain traction, many come to find that they need outside financing to continue growing, and therefore decide to go public. And that's where IPOs come in.
    An IPO, or initial public offering, is the process by which a privately held company begins selling stock to outside investors, thus becoming a public company. From that point on, the company can raise the capital it needs by selling shares, but it must also comply with a strict set of reporting guidelines, as established by the Securities and Exchange Commission (SEC).

  • This is a place to discuss right? I got a question raised by complaints in various places regarding the refund of rejected applications.

    There are two major ways to invest in IPOs, via:

    1. Net Banking
    2. UPI-mandate

    Recently, many people subscribed IRCTC IPO through these two modes. But when rejected applications initiated, the people who applied through net banking mode got refunded on the same day itself while on the other hand, the people who applied through UPI-mandate did not receive refunds for many days even after it is officially listed.

    Why there is refund issue in UPI mode for rejected applications?

  • @DhruvShukla Hi, I also read that huge number of people who had applied for IRCTC IPO waited for their refund to be processed. I think you should contact Alankit, the official registrar of IRCTC. There are various modes to contact them, you can send an email, log into their site or contact them via phone.
    For UPI payment gateway option, you can directly call at their helpline number to share your queries.

  • The Initial Public Offering or IPO is an investment scheme wherein private start-ups distribute shares to the public, usually in the form of equities. IPO stocks allow the public sector an ownership in the company’s profits, while also providing strong financial backing to incipient private firms.

    A lot of investors are skeptical about investing in IPO due to the risks involved. But here are some benefits you may want to consider:

    • Possibility of high returns as IPO is a stock investment.
    • Suitable for long-term goals such as post-retirement plans and buying property.
    • Minimal investment rates as small start-ups usually offer huge discounts.
    • Transparencies in dealings, as companies are required to provide extensive details about themselves in their prospectus.
    • Good for beginner investors due to low investment rates.

  • There are certain benefits if investing in an IPO. It is a nice way to un-earthed quality stocks in the stock market that is yet to be listed. First thing you need to learn is how to track an upcoming IPO in India? - as it will allow you to see through the list of upcoming IPOs that are to be listed in the stock exchanges. A savvy-investor always looks out for the latest potential IPOs before they go public to bid. If the IPO was a hit, the investor can make quick profits in a very short duration of time. Even if the stock doesn’t stand up to the mark but has much-hidden potential, it also allows investors to benefit from investing in a potential stock for long-term investment perspective.

    With Invest19- IPO Watch you will get to learn about the issuance size, name, promoters, outstanding litigation, and other crucial data on the company without scratching your brain in reading red-herring prospectus. IPO Watch from Invest19 gives every minor and major update on the IPO from over-subscription to in-depth research reports indicating whether you should invest in that particular IPO or not.

    I would strongly recommend you to give it a look!

  • IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO.

    Why do the company go public?

    • The existing private shareholder might want to make an "exit" and sell their shareholders to public.
    • The company might want to make an expansion or an acquisition or to have some more money in the bank
    • Both the combination of the above point.

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