Why an IPO is issued?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

A company issues an IPO for a variety of reasons. The first and foremost reason is to raise capital.

A few other purposes for a company to launch an IPO are as per below:

  • To build a brand image.
  • Loan repayment.
  • Low-cost capital.
  • Dilute promoter holdings.
  • Enhance credibility.


Add a public comment...