IPOs in India
What an IPO Is
An initial public offering is when a company sells its shares to the public for the first time and gets listed on a stock exchange.
An IPO turns a private company into a listed one. Anyone can then buy and sell its shares on the exchange.
Why companies list
To raise money for growth, repay debt, give early investors an exit, and gain visibility.
Fresh issue and OFS
A fresh issue creates new shares and brings money into the company. An offer for sale (OFS) lets existing shareholders sell shares, and the money goes to them.
Regulator
In India, SEBI regulates IPOs to protect investors.
A company goes public
A growing firm sells a slice to thousands of investors and uses the money to build new plants.
Thinking every IPO raises money for the company
An OFS pays existing shareholders.
Key takeaways
- An IPO lists a company for public trading.
- Fresh issues raise money for the company.
- OFS proceeds go to sellers.
- SEBI regulates the process.
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