New Delhi, July 1 -- The Indian primary market is buzzing, with 25 mainboard IPOs already having hit Dalal Street in the first half of 2025, while the SME IPO count has crossed the 100 mark.

While investors are quite keen to apply for an IPO, they must also understand what is an IPO and how it works.

An initial public offering or IPO is the process of converting a privately held organisation to a public organisation by issuing shares to investors. In the form of an IPO, a company's equities are issued to the public for the first time. A company that offers a public issue gets listed on the stock exchange and obtains funding through an initial public offering for debt repayment, capital expenditure, and to provide an exit path for its co...