IPO
Also called: initial public offering, public issue
An initial public offering, a company's first sale of shares to the general public, after which its shares are listed on an exchange.
In an IPO a company offers shares to the public, usually through a book-building process with a price band and a minimum lot size. Investors apply during the subscription period, shares are allotted under SEBI's rules, and the shares then list on the exchange.
An IPO can include a fresh issue (new shares, money to the company) and an offer for sale (existing shareholders selling, money to them). The offer document explains the business, the risks and how the money will be used.
Learn more in these lessons
- IPO basicsWhat is an IPO and how do you apply for one?
- Primary and secondary marketsWhat is the difference between the primary and secondary market?
- Evaluating an IPOHow do you judge whether an IPO is worth investing in?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.