What is an IPO?

• An **IPO** is the first time a private company offers its shares to the public.
• Companies raise capital for growth, expansion, or debt repayment through IPOs.
• Anyone can invest — retail investors, institutional investors, and HNIs.

Benefits of IPO

• Early entry opportunity to buy shares before stock exchange listing.
• Potential listing gains if the stock opens at a premium.
• Gives investors ownership in a growing company.

Risks of IPO

• Share prices may fall below issue price due to market volatility.
• High demand may lead to low or no allotment for retail investors.
• Company may underperform after listing, reducing returns.

What is Pre‑IPO?

• **Pre‑IPO** refers to buying shares of a company **before** it officially launches its IPO.
• These opportunities are usually offered to venture capital firms, private equity funds, and high‑net‑worth investors.
• Investors gain early access to companies that are expected to list on stock exchanges in the near future.

Benefits of Pre‑IPO:

• Early entry at a lower valuation compared to IPO price.
• Potential for high returns if the company performs well post‑listing.
• More flexible investment amounts (no retail cap).

Risks of Pre‑IPO:

• Less liquidity compared to IPO shares.
• Higher risk if the company delays or cancels its IPO.
• Limited access — not open to all retail investors.