IPO

What is an IPO (Initial public offerings?)

• IPO is issued when a private company wants to turn as public limited company
• IPO is issued to raise the capital to the company to carry the organization activities
• All IPO shares are issued to public, the capital received from IPO is used to the company activities & also for business expansion
• It is required to fulfill the requirements of stock exchanges as well as SEBI to issue IPO to the public
• Under writers are responsible to sell the Initial public offerings shares which is issued by the company

Advantages & Dis-advantages of the company

• Increase in equity base
• Best access to capital
• Increases company exposure, brand & reputation
• Employees can participate in employee stock option
• Can create multiple finance opportunities like converting debt to equity, best bank loans, equity etc

Dis-Advantages

• Too much legal
  
• More cost to organize
• Required attention every time from the management side
• Risk if required fund is not raised
• Information issued to public can take advantage by the competitors
• Loss control due to new share holders who invested more

Advantage & Disadvantages In Investors Point Of View
Everyone can buy shares in IPO but if you buy the best performing company. It makes sky rocket earning your share price from the day one of the stock exchanges

If the company is none performing you may lose the money as well

Examples of Initial public offerings, Performing Earlier
Indigo airlines issued at 765 at IPO recently now the share is trading at 1000 odd mark, so choosing this kind the best performing stock the investor can reap more profits.

Coffee day issued IPO at 300 odd marks but today the share value is 270 plus is trading in the stock exchanges. In this situation the investor may lose the money.

Buying A Stock In IPO? Consider Like The Following Things:

• Price in Initial public offerings
• Present situation about of company & industry
  
• Brand value of the company
• News on industry or company
  
• Others