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The direct advantages of listing on the stock exchange are several, and this is why itu2019s craved by most germinating companies and startups.<br><br>
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The year 2021 witnessed the launch of 72 IPOs on the Stock Exchange in India from January until September, and that jacked up a mammoth sum of $330.66 billion. Moreover, taking the present matters into consideration, 35 IPOs are in the offing, which involve Aditya Birla AMC, LIC, Nykaa, Mobikwik among many others. But, how do you explain the hysteria of the startups, several medium-sized companies, enterprises of scale, descried recently to see themselves listed on the stock exchange? The reason that validates this frenzy is that IPOs are the medium via which privately traded or unlisted companies hoist funds from the market. The raised capital is further put to the fruition and advancement of the enterprise. The Concept of Listing of Securities The process of listing stocks or securities on a stock exchange or stock market avails the shares of the enterprise to the public transactions. When a company gets itemized on the stock exchange, the interested investors can purchase and sell the stocks of the company. Let’s dive deeper into the procedure of a company’s listing here. How to list a company in the stock market? The enterprises looking forward to getting listed on the stock exchange, start by issuing an IPO. It is strictly permitted and done when the company meets the terms and criteria set forth by the SEBI (the institution that supervises the market commotion and sets the precepts). As the IPO is sanctioned or says the application has been approved, the interested investors, whether retail or institutional, subscribe to the IPO and contract to invest in the shares of the company. However, the number of stocks accessible for an investor is limited, thus not every investor who applies for the IPO accomplishes the shares. The distribution of the company shares is carried out through a random process to avoid any bias in selecting the legatees. Once the stocks are allocated to the respective investors, they get registered on the stock exchange. Benefits of Listing on the Stock Exchange The direct advantages of listing on the stock exchange are several, and this is why it’s craved by most germinating companies and startups. Here are some of the many favours that listing bestows on an enterprise. Why do companies list on Stock Exchange?
