Explained in simple words

Initial Public
Offering (IPO)

Khushi Agrawal
 Imagine a company that started in a
garage but has grown really
successful. They need more money to
expand, like building new stores or
creating new products. Up until now,
they've gotten their money from
private investors, like a small group
of people who believed in the
company.
 An IPO, or Initial Public Offering, is
like the company going public for the
first time. It's a way for them to raise
money by selling pieces of ownership,
called shares, to a much larger group
of people. Anyone can invest in the
company by buying these shares.
 This is a big deal for the company
because it opens them up to a lot
more cash. It's also a big deal for
investors because they can potentially
profit if the company does well and
the share price goes up. However,
there's also a chance the price could
go down.
So, an IPO is like a coming-out party
for a successful company, where they
invite everyone to invest and help
them grow even bigger.
List of documents required:
Draft Red Herring Prospectus (DRHP)
Certified True Copies (CTC) of
resolutions
Information on outstanding employee
stock option (ESOP)
Audited Financial Statements
Legal Opinions
Due Diligence Reports
Company Filling
Memorandum of Association (MOA)
and Articles of Association (AOA).