What is an IPO? Explained with Simple Examples

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Stock Market

πŸ” Introduction: What is an IPO?

An IPO (Initial Public Offering) is the first time a company sells its shares to the public in the stock market.

Before the IPO, a company is considered private. After the IPO, it becomes a public limited company and anyone can buy its shares on the stock exchange like NSE or BSE.

βœ… Simple Definition of IPO

IPO = Company’s First Time Entry into the Stock Market to Raise Funds from Public.

🧠 Why Do Companies Launch IPOs?

Companies launch IPOs for many reasons:

  • To raise capital for business growth
  • To repay loans or debts
  • To increase brand visibility
  • To allow early investors or founders to sell their stake

πŸ“Š Types of Investors in IPO:

  • Retail Investors – People like us (small investors)
  • HNI – High Net-Worth Individuals
  • QIB – Qualified Institutional Buyers like mutual funds and banks

🧠 How to Apply for an IPO?

  1. Open a Demat account (we help at Finmode!)
  2. Go to your broker or apps like Dhan
  3. Select the IPO and enter your bid price and quantity
  4. Wait for allotment (you’ll get refund if not allotted)

🧩 Key Terms You Should Know:

  • Lot Size: Minimum number of shares you must apply
  • Issue Price: Price range at which shares are offered
  • Listing Gain: Profit you make when IPO lists higher than issue price

πŸ† Real-Life Examples of Popular IPOs:

CompanyIssue PriceListing PriceGain
Zomatoβ‚Ή76β‚Ή11551%
LICβ‚Ή949β‚Ή872-8%
Nykaaβ‚Ή1,125β‚Ή2,01879%

πŸ“ Learn IPOs & Stock Market from Experts in Ahmedabad

If you want to learn how to apply for IPOs, analyze upcoming IPOs, and trade in the share market β€” join Finmode’s Stock Market Course.

πŸ“ We are located in Satellite, Ambawadi, Ahmedabad – a leading institute trusted by 500+ students.

πŸŽ“ Why Finmode is the Best Choice?

βœ… Practical learning with live examples
βœ… Expert trainers with years of experience
βœ… Real market case studies
βœ… Learn IPOs, Intraday, Swing Trading, and Fundamental Analysis
βœ… Certificate of Completion
βœ… Help with Demat account opening

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πŸ“ž Contact Finmode Today

πŸ“ Address: Gopal Palace, B 206, Nehru Nagar Cir, near Shiromani Complex, beside Satellite Road, Ambawadi, Ahmedabad, Gujarat 380009
πŸ“ž Call/WhatsApp: +91 81286 87299
🌐 Website: www.finmode.in


πŸ’‘ Start your stock market journey with Finmode β€” your trusted stock market institute in Ahmedabad.

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