What is IPO? What is the process of applying for IPO?

[peramila.f]

When a company requires huge amount of capital for future growth, it goes public for the first time, i.e, to sell the shares in the primary market.This process is called Initial Public Offering.

[Suvitha Pai]

When a company needs to raise fund for its business, it asks for public support. This is done through advertisement. The company issues share directly and a stipulated price. This is called initial public offering or IPO. We can buy these shares thorough banks,investment consultants bu filling in the application form for IPO. This is also controlled by SEBI.

[J Santhosh Kumar]

Initial Public Offering (IPO). When a company is planning to become a Public Limited Company where the equity shares are listed to the Public for raising capital . The first activity is called issuance of Shares this is called as Primary Market. Once the company is raised with the capital the shares allotted to the applicants are listed in to their Dem-at account and then it is listed out to the secondary market.

Process of Applying.
1. IPO opening date and closing date will be announced by the company.
2.Each company has Minimum Order Quantity (MOQ) and by that the orders are accepted and should follow the norms given in the notice as to where to submit and to which bank it has to be submitted etc.
3.Once the closing date of the application is finished the listing of shares in to the secondary market dates will be announced. On that day each applicant will know how much shares are allotted against applied. The balance amount for which shares are not allotted are credited back to the bank account given while submitting the application form.

[Neha Narayanan]

IPO refers to initial public offering where a company proposes to raise capital from the public through issue of shares or other instruments.
IPO comes under primary market.
process:
Fill the application form issued by the company which will be available with broker / online and pay the amount to the bank that is designated as the collecting center in the application form. This can be done by attaching a DD aswell. On allotment, shares will be transferred to the DEMAT account

[Sivaraj Muthusamy]

IPO is Initial Public Offering , When Company requires additional fund to expand their business, they raise funds through selling shares in primary stock market is called IPO. Company turns from Private to public after this process.

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