With the recent euphoria that has brought a lot of first – time investors to the stock markets – both in India and abroad, there has been a growing trend of another event.
IPO.
WHAT’S IPO?
For the uninitiated, IPO stands for ‘Initial Public Offering’.
It is the first time when shares of an enterprise are offered to the public for subscription through the capital markets.
In recent times, a lot of companies have started offering Private assets too (unlisted shares of companies and startups) but more on that later.
The Company generally offers a portion of it’s shares for the public to acquire either through a ‘fresh issue’ or an ‘offer for sale’.
For a lot of companies, IPO is more about giving an exit to existing shareholders rather than creating value for new shareholders.
Click here to continue reading.