Question

Write notes on Initial public offer (IPO)  

Answer 1

Initial Public Offer : (a) An Initial Public Offer is a type of public offering where shares are sold by the newly established company to the general public for the first time. (b) The public company makes an appeal to the general public to subscribe its shares by issuing a Prospectus. (c) The prospectus contains detailed information about the company its projects and shares. It also includes an application form which is supplied free of charge. (d) Investors use this application form to apply for the shares of company. (e) However, for raising capital by issuing shares, a public company has to comply with the specified provisions of the Companies Act and SEBI's guidelines