IPO

Are IPOs (initial public offering) worth investing. Understand with Kotak Neo the benefits of IPO investment, how your wealth can increase if due diligence is done

When a company issues its first shares to the public, it is known as an Initial Public Offering (IPO). Companies go from being 'private' to 'public' through the IPO cycle. Taking a company public allows them to raise working capital for expansions and other general corporate purposes. You can invest in IPOs of promising companies for long-term profits by acquiring their shares at reasonable prices. Nevertheless, the IPO process isn't a one-day event. The process of launching an IPO begins with the preparation of the Draft Red Herring Prospectus (DRHP) with the assistance of an underwriter and ends with the stock being listed on the stock exchange. You can understand each step of the IPO process in this article.

Book building is an IPO process where investors place bids for shares within a specified price range, enabling price discovery based on demand, and determining the final issue price.