How does an IPO work?
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An IPO allows you to buy shares of a private company going public for the first time. The process of how does an IPO work is straightforward. The IPO process in India allots the subscription of shares randomly to interested investors. The company issues a pre-defined quantity of shares. The influx of capital into the company can help it increase its revenue: thus, growing in valuation. This, in turn, benefits the investors by providing capital gains.