RR Finance

  Introduction Every large, publicly traded company—from Reliance Industries to Infosys—was once private. The turning point that let everyday investors own a slice of those businesses was the Initial Public Offering (IPO) . An IPO marks a company’s debut in the stock market and gives investors a chance to participate in its growth story from day one. But what exactly is an IPO, how does it work, and why does it matter? What Exactly Is an IPO? An IPO is the process through which a private company issues shares to the public for the first time . By doing this, the company becomes a publicly listed entity whose shares trade on a recognized exchange such as NSE or BSE. The funds raised help the firm expand operations, reduce debt, or invest in new projects. For investors, the IPO is the gateway to buy ownership in a growing business before it becomes widely traded. Why Companies Go Public Companies choose to go public for several strategic reasons: Capital for Expansion...