What is ipo

This invitation to purchase shares is also known as the initial public offering (IPO)<wbr />, through which a public company can raise the funds it requires. 

Initial public offerings (IPOs) are when a company offers stock shares to the public for the first time. IPOs can help a growing company expand, and it also allows early investors to cash in on their investments.

IPO grading is the grade assigned by Sebi-registered credit rating agency or agencies to an initial public offering (IPO). The grade represents a relative assessment of the fundamentals of that issue in relation to the other listed securities in India.

Here, one must note that the IPO grading is done without considering the price band at which the security is offered in the IPO. Investors need to make an independent judgment regarding the price at which they should bid for.