Meet Ajay. He owns a medium-size company in Mumbai. To expand his business outside Mumbai, Ajay would need Rs. 1 crore. To raise this amount, Ajay decided to sell a part of his business to the public by issuing shares through an IPO. When a company issues shares to the public for the first time, it is done through an IPO or Initial Public Offering.
Ajay decided to sell 10% of his 10 crore company by issuing 1 lac shares priced at Rs. 100 each. The shares were then listed on a stock exchange for the public to buy. In time, Ajay’s business flourished & the share prices of the company increased. The investors who bought his shares through the IPO sold their shares at a higher price & made great profit.
You can buy shares of an IPO by Partnering/Opening an Account with Angel Broking.