Initial Public Offering

Initial Public Offering (IPO) is conveyed as a process of offering shares of any particular private corporation to a public in the form of a new stock insurance. The shift from a private to a public company is considered an important time for private investors to understand the gains from their investment completely. These offerings traditionally include premiums of shares for current private investors. Alongside, the participation of public investors is also allowed in the offering.
A company planning an IPO would choose an exchange in which shares are issued and traded publicly where they typically select an underwriter or underwriters.

Benefits of Applying in IPOs

Invest Cheaper

The IPO price is the cheapest price at which you can invest in companies that have good potential of growth. So you have opportunity to buy cheap and earn big amounts.

Transparency

IPO investment is very transparent. Every IPO has a Red Herring Prospectus that contains all relevant information about the company like financial information, pricing of shares etc.

Retail discount

A retail investor sometimes get retail discount of around 10% on some IPOs, hence they can pick the IPO at a lower price than the issue price.

Achieve Long term goals

All IPOs are equity investments and thus have potentials to give big returns in long term which can help you achieve long term goals.