FINANCEOUTLOOKINDIAOCTOBER, 20248By Finance Outlook India TeamREPORTIndia has become a hotbed for initial public offerings (IPOs) in recent years, as more and more businesses look to the public markets for development and growth. Also to note, this tendency is not exclusive to well-established businesses; startups and unicorns aiming to expand also follow this pattern. Every kind of business that wants to go public has different goals, traits, and approaches for using the public markets to expand and add value for investors. However, when deciding whether to go public, a firm must carefully weigh its long-term strategic objectives, investor opinion, legal requirements, and market conditions.Comprehending the IPO JourneyAny firm that wants to go from private ownership to public listing on stock markets must undergo an initial public offering (IPO). The Securities and Exchange Board of India (SEBI) oversees the procedure in India, which calls for careful preparation, adherence to legal requirements, and strategic decision-making. The journey often begins months, if not years, in advance of the official listing date. In general, companies that undergo an Initial Public Offering (IPO) can be classified into three main groups according to their financial health and development stage: Early-stage Development Companies: Usually startups or young businesses, who have seen rapid development and are seeking funding to continue expanding. Features: Possibility for rapid expansion with cutting-edge goods and services. With a short operational history, the market is showing promise. Frequently looking for funding to grow operations, make R&D investments, or access new markets. Mature Companies: These are well-established companies with a track record of steady operations and profitability. Features: Reliable revenue sources and an established market presence. profitability that has been proven or a clear route to profitability. The INDIA BECOMING A HOTBED FOR INITIAL PUBLIC OFFERINGS
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