IPOs

Subject: Economy

Context:

There are only 2 Initial public offerings in last 6 months in both NSE and BSE.

Concept:

• Initial public offering is the process by which a private company can go public by sale of its stocks to general public. It could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.
• Companies can raise equity capital with the help of an IPO by issuing new shares to the public or the existing shareholders can sell their shares to the public without raising any fresh capital.
• After IPO, the company’s shares are traded in an open market. Those shares can be further sold by investors through secondary market trading.