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From private company to listed giant. What an IPO is, how to apply, and whether it's worth it.
IPO stands for Initial Public Offering. It's the first time a private company sells its shares to the general public and gets listed on a stock exchange (NSE/BSE).
Before an IPO, a company's shares are held privately by its founders, early investors, and venture capitalists. An IPO lets the public buy in — and gives the company access to large amounts of capital.
Before listing, shares trade informally in the "grey market." GMP is the premium at which these unofficial trades happen — it gives a rough indication of expected listing price.
Example: IPO price ₹400. GMP = ₹80. Expected listing ≈ ₹480.
Warning: GMP is unofficial, unregulated, and often manipulated. Don't make IPO decisions purely based on GMP. Actual listing can be very different.
Key Takeaway
An IPO is a company's first sale of shares to the public. It raises capital for the company and lets early investors exit. Apply via UPI through your broker. Always read the DRHP before applying — never invest purely based on hype or GMP. IPOs can generate big listing gains but can also list at a loss.