New Delhi, May 2 -- Companies may often need to raise funds for multiple purposes, such as expansion, clearing debt or meeting working capital requirements. Out of the several options to raise funds, some companies opt for an initial public offering (IPO), which marks a significant transition for them.

An Initial Public Offering or IPO is a process by which private companies offer shares for the first time to the public. Through an IPO, a private company becomes listed on the stock exchanges and becomes public. IPO is often referred to as 'going public' because a company transitions from private to public ownership. Following an IPO, the shares of the company are traded on the stock exchange.

Issuing an IPO involves multiple steps, incl...