New Fund Offering
New Fund Offering
New Fund Offering
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes share premiums for current private investors. Meanwhile, it also allows public investors to participate in the offering.
KEY TAKEAWAYS
- An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance.
- Companies must meet requirements by exchanges and the Securities and Exchange Commission (SEC) to hold an initial public offering (IPO).
- IPOs provide companies with an opportunity to obtain capital by offering shares through the primary market.
- Companies hire investment banks to market, gauge demand, set the IPO price and date, and more.
- An IPO can be seen as an exit strategy for the company’s founders and early investors, realizing the full profit from their private investment.

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Frequently asked questions
Common business and finance question and answer
Is there a lock-in period for New Fund Offerings?
Open-ended NFOs usually have no lock-in, while close-ended ones might restrict withdrawals for a specific term.
How do I track the performance of an NFO after investment?
Once listed, KSquare provides regular updates and performance tracking via your investor dashboard.
What documents are needed to invest in an NFO through KSquare?
You’ll need KYC-compliant documents like PAN, Aadhaar, and bank details to invest in NFOs through KSquare.
Can NRIs invest in NFOs via KSquare?
Yes, most NFOs are open to NRIs subject to fund house guidelines. KSquare helps confirm eligibility for NRIs.
Are NFOs better suited for long-term investors?
NFOs are ideal for long-term investors who can wait for the fund to build performance and portfolio over time.
How is an NFO different from regular mutual fund schemes?
Unlike existing funds with track records, NFOs offer fresh investment opportunities, often at a face value of ₹10.