What is IPO? Meet Ajay he owns a medium sized company in mumbai to expand his business outside mumbai Ajay would need Rs. 1cr to the races amount ajay decided to sell of part of business to the public might be issuing shares throw in IPO. When company issue the shares in for the first time that it is done to an IPO whoa initial public offering. Ajay decided to the sell ten percent of his 10 crore company by issuing Rs. 1 lacks shares that price set rupees hundred each. This share listed on the stock exchange for the public to buy and that time ajay businesses flourished and the share price of the company increased. The investors who bought shares throw IPO. Sold their shares higher prices and make great profit.