By Admin 
You must have often heard that a company is being listed in the stock market or bringing its IPO. But can anyone bring the IPO of their company and what is necessary for it? Today we understand this.
What is IPO?
First of all, we know that if the IPO is, the IPO ie Initial Public Offering means that a company sells its shares to the public for the first time. This gives the company money, which it uses to increase its business, repay debt or invest in new projects. In return, people who buy shares become partners of the company. After the IPO, the company is listed after that anyone can buy or sell shares of the company.
Who can bring IPO?
Any company, whether it is small or big, can bring IPO, provided it fulfills some important terms and conditions. In India, the company has to follow the rules of SEBI to bring the IPO. SEBI is an institution to control the stock market in India. So let’s know what is necessary to bring IPO
Company qualification
First, the company has to fulfill some financial terms. According to SEBI rules, the company should make profits continuously for at least three years. The company’s net worth (total assets) should be at least Rs 1 crore. If the company does not meet these conditions, it may be allowed to bring IPO with some special discount, but it is a bit complicated.
Legal and financial documents
To bring the IPO, the company has to keep all its financial records and business plan transparent. For this, the company has to prepare a DRHP. This is a document, which contains complete information of the company. Such as his business model, income, expenditure, risk and future plans. It has to be deposited by SEBI and SEBI examines it.
Appointment of merchant banker
To bring the IPO, the company has to appoint a merchant banker. These bankers help the company explain the process, fix the share price and reach investors. In addition, the company has to apply for listing in stock exchange (eg BSE or NSE).
SEBI approval and listing
After getting approval from SEBI, the company can sell its shares to the public. For this, share applications are accepted within a fixed deadline. Then, shares are listed on the stock exchange and investors can buy and sell them.
Challenges and precautions
It is not easy to bring IPO. It takes a lot of time, hard work and money. The company also has to take care of market status, investors’ interest and economic environment. If there is a slowdown in the market, the IPO cannot get good response. Also, the company has to keep its business transparent, because investors and SEBI check every small and big information.
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