A fundamentally sound company's Initial Public Offering (IPO) offers the chance for common investors to participate in its growth from the start by purchasing shares and holding a small ownership position.
Through an IPO, companies access the share markets to raise money. The money obtained could be used for a variety of company needs, including capacity development, product diversification, expansion into a new market, a substantial R&D project, merger and acquisition activities, etc.
The disclosure of proposed usage of the funds is mentioned in the issue prospectus.
IPOs provide a great opportunity for wealth creation as well as portfolio diversification.
With Axis Direct #IPOInvestingMadeSimpler
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