What is an IPO (Initial Public Offering)?
An IPO is when a private company first sells shares to the public and lists on the exchange. It’s how you can buy in on day one — with real risks.
An Initial Public Offering (IPO) is the first time a private company sells its shares to the general public and gets listed on a stock exchange. The company raises money (to grow, repay debt, or let early investors exit), and in return the public gets to own a piece and trade it freely afterward.
In India you apply for an IPO through your broker using ASBA/UPI, where the amount is blocked in your bank account until shares are allotted. Because IPOs are often oversubscribed, you may get fewer shares than you applied for, or none. On listing day the price can open well above or below the issue price — sometimes dramatically.
IPOs are heavily marketed, and that hype is exactly why caution pays. The company and its bankers choose the timing and price to maximise what they raise — not to hand you a bargain. Read the prospectus (DRHP) for how the money will be used, the company’s real financials, and the risks, rather than chasing "listing gains" on buzz alone.
See it on real companies
Browse live financials and decoded filings, or just ask in plain English.
Common questions
Are IPOs a guaranteed profit?
No. "Listing gains" happen sometimes, but many IPOs also list flat or below their issue price. The pricing is set to benefit the company and selling shareholders, so treat each one on its fundamentals, not the hype.
What is a DRHP?
The Draft Red Herring Prospectus — the detailed document a company files with SEBI before an IPO, covering its financials, business risks, and how it will use the money raised. It’s the single best source to read before applying.