Glossary
IPO: meaning, example and why it matters
Initial public offering: the first time a company offers its shares to the public so they can be listed on an exchange.
Worked example
A company offers 1 crore shares at ₹200 each. If fully subscribed it raises ₹200 crore, part of which may be new shares issued by the company and part shares sold by existing holders.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
An IPO is when a company's shares first become available to the public, and the offer document sets out the company's finances and risks.
Related terms
See it in practice
Frequently asked questions
Does every IPO list above its issue price?
No. The listing price can be above, at or below the issue price. The difference is the listing gain or loss.
Is this page investment advice?
No. IPO is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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