What is IPO? A Simple Guide with Indian Examples & Book-Built Issue Explained If you follow the Indian stock market, you must have heard news like “XYZ company’s IPO opens tomorrow” . But what exactly is an IPO? How does it work? And what is a book-built issue? Let’s understand everything in simple language with Indian examples. ๐ What is an IPO? ๐ฏ Why Do Companies Launch an IPO? ๐ฎ๐ณ Example of IPO in Indian Context ๐น Life Insurance Corporation of India (LIC IPO – 2022) ๐งพ Types of IPO Issues in India 1️⃣ Fixed Price Issue If a company fixes ₹100 per share, every investor must apply at ₹100. 2️⃣ Book-Built Issue (Most Common Method in India) ๐ What is a Book-Built Issue? Price band: ₹100 to ₹120 ๐ How Book-Building Works (Step-by-Step) ๐ What is Cut-Off Price? ๐ฆ Who Regulates IPO in India? ๐ Real Example of Book-Built IPO Hyundai Motor India (hypothetical IPO example) ๐ค Why Book-Built Issue is Better? ✔ Fair pricing ✔ Reduces underpricing or overpricing ✔ ...
DustFinance-By Guvi -Removing the Dust from Financial Riddles Through Fundamental Analysis