Module 1   Introduction to Stock Market (video series)Chapter 3

All about the Initial Public Offer (IPO)

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3.1 – The IPO Markets

Companies list on the stock exchange to raise funds. Once listed on the stocks exchanges, market participants can trade and invest in the company’s shares. This video will take you through the process and reason for companies to list on an exchange.


Once a company transitions from primary to secondary markets, the stock price constantly fluctuates. You must understand why the stock price fluctuates. Let’s move on to the following video to understand the same.

We recommend reading these Part 1 and Part 2 chapters of IPO Markets on Varsity to learn more and understand the concepts in-depth.

Key takeaways from this chapter

  1. Companies go public to raise funds, provide an exit for early investors, reward employees and gain visibility.
  2. Merchant banker acts as critical partner with the company during the IPO process.
  3. SEBI regulates the  IPO market and has the  final word on whether a company can go public or not
  4. As an investor in the IPO, you should read through the DRHP to know everything about the company.
  5. Most of the IPOs in India follow a book-building process.



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  1. Satishchandra Dinakar says:

    Hi Team Zerodha, Great work. Good Initiative. I like to personally congratulate Mr.Karthik and Mr.Prateek. I thought of sharing some content which I had prepared some 8 years back. If possible please share your contact email so that I can forward the same.

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