IPO or an Initial Public Offering is the first sale of a company’s equity to the
public. Initial Public Offer of good and growing Companies keep on coming in the
market. One should keep a tap on such IPO’s. It has been observed over the years
that investors, who bought equity shares (through primary market) as long term investment
have made sizeable amount.
What is IPO
IPO or Initial Public Offer is a way for a company to raise money from investors
for its future projects and get listed to Stock Exchange.
From an investor point of view, IPO gives a chance to buy shares of a company, directly
from the company at the price of their choice (In book build IPO's). Many a times
there is a big difference between the price at which companies decides for its shares
and the price on which investor are willing to buy share and that gives a good listing
gain for shares allocated to the investor in IPO.