| Do you know what "Initial Public Offer" is or have | | | | - The company appoints investment bankers who |
| you heard of the term IPO? This is the process of | | | | would manage the IPO and raise funds. They |
| listing a particular company in Indian Stock exchanges. | | | | evaluate the balance sheet and the assets maintained |
| You can learn more on the listing process in this | | | | by the company and study the current valuations of |
| article. | | | | the company. |
| There are two main stock exchanges in India. They | | | | - Once they evaluate the valuations, they fix the |
| are: | | | | price band for the IPO which would be fixed in |
| BSE-Bombay Stock Exchange | | | | comparison with the peers that are currently listed in |
| NSE-National Stock Exchange | | | | the exchanges. If the price is fixed in line with its |
| A company would be interested to raise funds for | | | | peers, then the subscription chances for the IPO |
| their business expansion and other purposes. They go | | | | would be high. |
| for an Initial Public offer through which they offload | | | | - Then the issue will start on the corresponding issue |
| their shares and raise money from the public. This | | | | date. The investors can apply for the IPO on the |
| process is called an Initial Public Offer. | | | | corresponding dates. |
| IPO Listing Process: | | | | - After the subscription closes, the stocks will be |
| - A company initially files for DRHP - Draft Red | | | | allotted to the applicants based on the subscription |
| Herring prospectus with the SEBI (Stock Exchange | | | | status. This will take a time of two to three weeks |
| Board of India). | | | | after which the company lists in the exchanges. |