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Initial Public Offering (IPO) – Definition, Everything you need to need about IPO | 2021

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AGENDA :

What is meant by an IPO?

How works IPO?

How to get profit from IPO?

What is IPO investment?

Is it good to invest in the IPO? 

Why is IPO considered high risk?

What is an IPO example?

Why company declared an IPO?

 

 

 

Let us Explore about an IPO : 

 

❶ What is meant by an IPO?

 

IPO is an INITIAL PUBLIC OFFERING. A company needs growth and development for this company to raise money by declaring an IPO. IPO is a tool in which a company raises money from people. IPO is declared under a SEBI and EXCHANGES hence there no fraud by a company with a people.

 

 

 
❷ How works IPO
 

 

 
IPO is work as a startup for the company. 
⒝ From IPO company raises money from people. 
⒞ By declaring IPO company sell their shares to investors.
⒟ Investors get ownership by buying shares of a company.
⒠ The company sells 49% of shares to investors.
⒡ As a company grows and develops share price is increased.
⒢ When the share price is increased than its IPO price then investors get a profit by selling a share.
IPO is to sell ownership to investors.  
⒤ Investors buy or sell their shares through BSE and NSE.
51% of the part is the owners of the company.
 

❸ How to get profit from IPO?

 

 

Investors buy a share of the company and when a company in profit then investors selling their shares. the company raises a fund from people by declaring an IPO. By buying a share of company investors buy ownership of the company.
 

❹ What is IPO investment?

 

 

  IPO is declaring under the stock exchanges i.e NSE and BSE. By the suggestion of an expert is that investment for the long term is healthy for financial conditions. IPO investment for the long term is the best way for startups for businesses, jobs e.t.c. In IPO investment When a market is open buy and sells of share is possible. 

 

Is it good to invest in the IPO?

 

 

YES, Invest in IPO is good for financial condition but, which company is good for IPO investment?
 
⒜ A company who give a consistency of return.
⒝ A company that gives regular dividends.
⒞ The company provide a guidelines to investors regularly. 
⒟ A company that gives annual reports quarterly i.e every 3 months.
⒠ A company that gives a bonus share. 
 

Why IPO considered high risk?

 

 

IPO considered high risk because IPO is a part of EQUITY MARKET and in the equity market, all companies cannot perform sufficiently hence we need to study on a particular company in which we want to invest. In the influence of SEBI i.e security and exchange board of India, every company is filtered therefore the company cannot try to fraud. If any company tries to fraud then SEBI takes strong action on that company.
 
❼ What is an IPO example?

 

 

The best example of an IPO is IRCTC i.e Indian railways catering and tourism corporation.
 
IPO DECLARED DATE: Sep 30, 2019
IPO CLOSED DATE: Oct 03, 2019
FACE VALUE: 10 Rs per equity share.
IPO PRICE: 315-320 Rs per equity share.
LISTING AT: NSE AND BSE.
LOT SIZE: 40 Share.
MARKET CAPITALIZATION: 220 Billion. 
 
Why company declared an IPO?
 

 

 
A company needs strong market capitalization, growth, and development e.t.c, and for this company to raise money from people it is called EQUITY FINANCING. The company also needs a big amount to develop and grow as the company develops or grows the price of each share of that company is increases as per growth and development. After the declaration of IPO, the company needs to provide an annual report quarterly to investors.

 

 

 
 
 

 

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