IPO

Why Do Companies Bring an IPO….? ⿡ Raise Funds – For expansion, new projects, R&D, acquisitions. ⿢ Reduce Debt – Repay loans and strengthen balance sheet. ⿣ Exit Route for Early Investors – Promoters, VCs, and PE funds can book profits. ⿤ Increase Brand Value – A listed company gains trust & visibility. ⿥ Liquidity for Shares – Public can buy/sell shares freely in the stock market. 📊 Types of IPO Issues 🔹 Fresh Issue New shares are created money goes to the company for growth. 🔹 Offer for Sale (OFS) Promoters/investors sell part of their stake and money goes to them, not the company. Many IPOs are a mix of both. 📖Quick Example: A startup wants to collect ₹500 Cr: •₹300 Cr Fresh Issue (for expansion) •₹200 Cr OFS (investors selling stake) ➡ After IPO, company gets listed and you & I can buy its shares in NSE/BSE