IPO stands for Initial Public Offering. It is the process through which a private company offers its shares to the public for the first time and gets listed on a stock exchange like NSE or BSE.
A company files documents with SEBI, decides a price band, opens the IPO for public subscription, and after allotment, shares are listed on the stock exchange.
If a company issues shares at ₹100 and the listing price becomes ₹120, investors gain ₹20 per share.
IPO investments involve market risk. Returns are not guaranteed and depend on market demand and company performance.
IPO helps companies raise capital and gives investors an opportunity to become shareholders, but proper analysis is always necessary.