What is an IPO in Share Market

An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time. This process allows the company to raise capital from investors by selling ownership in the form of stocks.

Here’s a simple breakdown:

Before IPO: The company is privately owned, usually by founders, early investors, and a few stakeholders.During IPO: The company sells a portion of its shares to the public through the stock exchange.

After IPO: The company becomes publicly traded, and its shares can be bought and sold on the stock market.

Why companies go for IPO:

To raise funds for expansion, research, or debt repayment

To increase visibility and credibility

To allow early investors to exit or cash out

If you’re investing in an IPO, you’re buying shares at the first public offering price — before they start trading on the open market.

Leave a Reply

Your email address will not be published. Required fields are marked *