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1. What is an IPO and Why Do Companies Go Public? The announcement of the IPOs makes for really grand headlines in the finance industry. People heavily trading in stocks meticulously follow upcoming IPOs in India as they are constantly looking to strengthen their portfolio. And as a smart and brilliant investor, we need to be up to date with the upcoming IPOs in India as well. What is IPO? Initial Public Offering or IPO is a process by which a private company can go public by sale of its stocks to the general public for the first time. It could either be a new, young company or an old company that decides to be listed on an exchange and hence, goes public. At the time of issuing their shares to the public, companies can raise equity capital with the IPO, or the existing shareholders can sell their shares to the public. Moreover, companies fall into two categories: Public and Private. A private company is run by a closed group of people with fewer shareholders who don’t give out much information about the company. Any business with a good influx of money, the right legal documents, and some other required formalities is a private company. You cant buy shares from a private company. You can approach the shareholders privately; moreover, they are not obliged to sell their shares. Public companies, moreover, sell at least a part of their shares to the public and trade on a stock exchange. This is why at the time of announcing an IPO is also referred to as “going public.” Once the upcoming IPOs in India finally make their announcement, their shares are available for people to buy. And since the public is majorly involved, the companies are immediately bound by stricter rules to maintain transparent financial information sharing and set-up of a robust board of directors. The most thrilling thing about a company going public is that the shares are traded in the open market, like any other commodity. Anybody who has cash can invest. Why do private companies go public?

2. Being listed on a major stock exchange increases the company’s standing considerably. Going public means an influx of money, and oftentimes the amounts are huge, and that is extremely beneficial for the growth of the company. They open traditional financial doors defined by the demand for stocks by the public. With increasing demand in the market, the companies issue more stocks in the market. Thus, mergers and acquisitions are easier to do because stock can be issued as a part of the deal. So one would imagine that any company could be listed on the upcoming IPOs in India and go public eventually. But there are several criteria laid out by SEBI that have to met before the grand announcement. An IPO is just selling stock. It has to be supported by a strategy of strong sales. If the company can convince people to buy their shares, they can raise a lot of money. Financial newspapers, trading companies feature a list of upcoming IPOs in India, and this is a rapidly growing stratosphere. As a smart investor, you need to know these companies and general public response to it so that you can grab lucrative opportunities for a robust portfolio. Also Read: How to invest in mutual funds Zerodha Account Opening, Demat Account Opening, Zerodha Stock Broker, Best Stock Broker Near Me, opening a Demat account, Free Demat Account, Open Demat Account, Demat Account Free, HDFC Securities Review, Looking For Long Term Investments, Zero Stock Broker in India