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What is IPO? A Simple Guide with Indian Examples & Book-Built Issue Explained

 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. ๐Ÿ“Œ What is an IPO? ๐ŸŽฏ Why Do Companies Launch an IPO? ๐Ÿ‡ฎ๐Ÿ‡ณ Example of IPO in Indian Context ๐Ÿ”น Life Insurance Corporation of India (LIC IPO – 2022) ๐Ÿงพ 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) ๐Ÿ“– What is a Book-Built Issue? Price band: ₹100 to ₹120 ๐Ÿ”Ž How Book-Building Works (Step-by-Step) ๐Ÿ“Œ What is Cut-Off Price? ๐Ÿฆ Who Regulates IPO in India? ๐Ÿ“Š Real Example of Book-Built IPO Hyundai Motor India (hypothetical IPO example) ๐Ÿค” Why Book-Built Issue is Better? ✔ Fair pricing ✔ Reduces underpricing or overpricing ✔ ...