IPO Guru

What is IPO Subscription? When a company decides to go public by offering shares through an Initial Public Offering (IPO), investors have the opportunity to buy these shares. The process through which investors express their interest in purchasing these shares is called IPO subscription . This process allows both institutional and retail investors to place bids for a company's shares before they hit the stock market. How Does IPO Subscription Work? IPO subscription essentially reflects the demand for the shares being offered. If the number of shares requested by investors exceeds the number of shares offered by the company, the IPO is said to be oversubscribed . On the other hand, if the demand is lower than the supply of shares, it is undersubscribed . Companies usually offer shares through two main methods: Fixed Price Issue and Book Building Process. Fixed Price Issue : Here, the company decides a fixed price at which the shares will be sold. Investors must agree to this price w...

When a company grows and reaches a point where it needs more funds to expand, it often considers going public by launching an Initial Public Offering (IPO). Going public essentially means offering shares of the company to the public for the first time. This process comes with many benefits, which is why companies take this step. Let’s break it down in simple terms. 1. Raising Capital for Growth One of the main reasons companies go public is to raise funds. When a company sells shares in an IPO, it gets a significant amount of capital from investors. This capital can be used to expand business operations, develop new products, invest in technology, or even acquire other companies. Essentially, the IPO provides an influx of cash without the company needing to take on debt. Unlike loans, which have to be paid back with interest, the money raised from selling shares doesn’t require repayment. 2. Brand Recognition and Trust Launching an IPO can significantly boost a company’s reputation. Be...