Institute of Financial Markets

 Introduction "IPO season aa gaya hai!" You must have heard this phrase whenever a lot of new companies start listing on the stock market. IPO stands for Initial Public Offering — it’s when a private company offers its shares to the public for the first time. But how should you evaluate an IPO? Why do some IPOs make investors rich, while others crash after listing? Let’s explore with real-life Indian examples. What Exactly is an IPO? An IPO is the process through which a company raises money from public investors by offering its shares on a stock exchange. Reasons Why Companies Launch IPOs: Raise capital for expansion Repay debts Improve brand visibility Give early investors and promoters an exit opportunity Example: Zomato IPO (2021): Zomato raised ₹9,375 crore to expand its food delivery and grocery businesses. How Does an IPO Process Work? 1. Company Appoints Merchant Bankers (Lead Managers) Example: Kotak Mahindra Capital, Axis Capital 2. DRHP Filing (Draft Red Herring Pr...