Question
Which of the following statements is/are correct
regarding Initial Public Offering (IPO) in India? 1)An IPO is a process by which a company raises funds by selling its shares to the public for the first time 2)An IPO can only be done by unlisted companies in India. 3)It is a process by which a private company becomes public.Solution
Statement 1 is correct as an IPO is a process by which a company raises funds by selling its shares to the public for the first time. Statement 2 is incorrect as even listed companies can undertake an IPO in India to raise additional funds.
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