How to get Funds from Public & how to raise capital for business by IPO Initial public offering. Here RBI & SEBI guidelines to be followed strictly.
If you are planning to grow your business in a very big way, all over the country, then you should know how to raise capital for business in a really big way. A Company must raise BIG Business Capital for business expansion. Then you should find out how to raise capital for business from the “General Public” & have more liquid Cash in hand.
In this video tutorial, we discuss how companies can get public funding by various different methods and raise capital for business. We discuss many ways to get public funding including the IPO Initial Public Offering. We discuss basics of IPO which is normally not discussed anywhere.
Management Guru Peter Drucker says – Business that is easily defined, It’s other People’s Money! Going public is to raise huge funds from the public and to have more liquid cash in hand by selling the company shares to the general public. The money thus obtained can be used in any way that the company wants for the purpose of business expansion.
There are various ways how to get public funding and to raise capital for business from the public. The most common way is by taking the IPO route ie Initial Public Offering. Companies take the IPO route to raise big business capital. Hence initial Public offering IPO route has become an absolute necessity if a company is interested in getting public funds & raise huge funds for their business expansion. Here the regulations laid down by Reserve Bank of India & statutory regulatory body SEBI has to be followed very meticulously.
When companies go public, a great amount of prestige and reputation gets built up overnight. Being listed on a major stock exchange like the NYSE or NASDAQ carries a great amount of prestige and can make all the difference to your business.
Not every company can get Public funding. Before any company can even think, how to get public funding and IPO, they will have to get qualified first, based on their previous financial performance and their assets & liabilities. The companies have to fulfill very stringent norms. “Going Public” is not only a very lengthy process but quite complicated too. The initial costs of going towards an IPO are quite expensive. It is the company’s previous financial performance which counts most for the general public before investing in shares. They look into these aspects very diligently. Public companies can have thousands of shareholders and have to follow very strict rules and regulations.