Institute of Financial Markets

Introduction Every few months, headlines scream: "XYZ Company IPO subscribed 200 times!" "ABC Limited lists with 100% gains!" IPO — or Initial Public Offering — sounds exciting. But how do you, as a smart investor, figure out which IPOs are worth your money? Let’s break it down, with real examples from Indian stock market history. What is an IPO? An IPO is when a private company sells its shares to the public for the first time, allowing anyone (like you and me) to become a part-owner. Post-IPO, the company gets listed on stock exchanges (NSE/BSE) and can trade publicly. Why Companies Launch IPOs Raise Capital: For expansion, debt repayment, R&D, etc. Give Exit to Early Investors: Venture capitalists, private equity funds cash out. Enhance Brand Visibility: Listed companies enjoy more trust and credibility. Example: When Zomato launched its IPO in 2021, it raised around ₹9,000 crore to fund growth and give exits to investors like Info Edge. Types of IPO Invest...