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.

A 1 only Correct Answer Incorrect Answer
B 1 and 2 only Correct Answer Incorrect Answer
C 1 and 3 only Correct Answer Incorrect Answer
D 2 only Correct Answer Incorrect Answer
E 1, 2 and 3 Correct Answer Incorrect Answer

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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