What Is IPO/FPO/OFS?

Investment in IPO (Initial Public Offering) is a mechanism for an unlisted company to raise fresh funds from the primary market and also list the stock in the stock exchange. A minor variant of Investment in IPO is the Follow-up public offer (FPO). Unlike the IPO investment in India helps the company to list on the stock exchange, a company that is already listed can raise additional capital through a follow-on public offer. Offer for Sale (OFS), enables promoters to dilute their holdings in listed companies in a transparent manner. An OFS does not result in fresh raising of funds and only results in a transfer of ownership from one shareholder to another. IPO investment in India gets the capital for the company to boost when people buy their company’s equity. And people get to reap the fortunes of the company proportional to their shareholding. If all goes well, the relationship is mutually beneficial.

When the IPO in stock market hits the market, and opens for subscription it is referred to as the primary market. As the name suggests, the primary market is the initial market. Once the IPO in stock market shares are listed then they will trade in the secondary markets.

Investment in IPO suggests that Initial Public providing is a method by which a company becomes a publicly listed company by providing its shares to the general public for the primary time. a non-public company, that includes a few shareholders, shares the possession by going public by commerce its shares. Investment in IPO can also be done online IPO online investment is a popular mode of investment because it has the potential to grow manifold in a short period of time first it is to decide to invest in the particular company’s IPO, the next step is to arrange for funds then you can use your savings for investment in IPO. When you are all set with your trading account then you can bid and there is allotment of shares. Once the shares are allotted, they will be credited to your demat account. IPO online investment is easy to access and understand your trading transactions.