After compliance with the formalities contemplated in the Companies Act, a company is formed with Authorised and Paid-up Capital to run a company with its objectives. Subsequently, with a mind to achieve its ultimate goal, a company needs additional financial resources and the same can be done by IPO to both Institutional Investors as well as Private Investors. Particularly the institutional investors subscribing to the shares of the company arranged for the listing of the shares in the stock exchange.
Here lies the importance of the renowned service providers like Gretex Corporate Pvt Ltd which undertakes the entire process of issuance of shares and find out suitable investors and get those shares and scripts listed on the Stock Exchange.
To succeed in the entire process, there should be appropriate innovation and other calculated factors which regulate the Uptrends and Downtrends of the shares in the market.
An IPO is the actual take-off of the company as it provides access of raising a lot of money towards a greater ability to grow and expand.
Although it’s a fact that the companies go for equity finance when it has already consumed other sources of finances in as much as IPO is a costly and time-consuming Equity Finance for a startup.
Equity Financing not only involves the sale of other Equity Share but also includes the sale of other Equity Instruments like Common Shares, Share Warrants, Preferred Stock, etc. There are examples of several companies like Reliance Industries, Tata Industries, Sun Pharmaceuticals, Adani, etc which started from a low profile but subsequently have risen to the Apex of Eminence by intelligent handling of finances.
So, in this era of big Businesses and Multinational Companies small and medium Industries also co-exists with vibrance and prominence.