Initial Public Offerings (IPOs) represent an exciting investment opportunity in the Indian stock market. When a company goes public, it offers shares to the public for the first time. Here’s what you need to know:
IPOs allow investors to buy shares of a company before they start trading on stock exchanges. Companies use IPOs to raise capital for growth and expansion.
IPOs in India are typically offered at a fixed price or through the book-building process, where investors bid for shares. Subscriptions are categorized as retail, non-institutional, and qualified institutional buyers (QIBs).
After the IPO subscription period ends, shares are allotted to investors. Once listed, shares can be traded on stock exchanges like NSE and BSE.
While IPOs can offer substantial returns, they also carry risks. Investors should carefully study the company’s prospectus, financials, and market conditions before investing.