Companies go public by launching an Initial Public Offering (IPO) to raise capital for expansion, debt repayment, R&D, and branding.
This also enhances their visibility and provides liquidity for shareholders. The process involves preparing financial statements, regulatory approvals (e.g., SEBI in India), marketing via roadshows, pricing, and listing on the stock exchange.
While IPOs offer benefits like increased capital, credibility, and growth opportunities, they come with challenges like compliance costs, loss of control, and market scrutiny. For example, Zomato’s 2021 IPO raised funds for expansion and innovation, highlighting the transformational impact of going public.