In this section you can know all about IPO .We are trying to give you a complete idea about IPO.
1.What is an IPO?
IPO ,Initial Public Offer, is a method or mode by which a limited company raises capital by offering share to the public in general for the first time.
In this the existing shareholders- promoters and any investo ,offer their portion as a whole or in part to the public for a price.
2.Why does a company go for IPO?
A company go for IPO for following reasons:
a)Company needs funds for expansion or paying off existing debts.
b) Promoters and other existing investor wants to sell their holding.
3.What is Issue price or IPO price?
IPO price is a price of a share at which the company offers to public in IPO.This could be a fixed price or a price range(generally known as book building)