Answer the Question based on following case study.

Mr. Raj is working as finance Manager is Amaira Company. Company has a capital Base of ₹50 lacs of Equity shares of ₹100 each. Now Company wants to enter into a new project for which it requires capital of ₹40 lacs. There are two options available to him.First to invite subscription from public through issue of prospectus and second to go for long term borrowing by issuing debentures. But Issue of debentures will not be suitable as the rate of return of company is less than Interest Rate of debentures. So the final decision was to issue Equity shares.

Give the full form of IPO.

Initial Public Offer

The correct answer is option (4) : Initial Public Offer

The full form of IPO is "4. Initial Public Offer." An Initial Public Offer (IPO) is the first sale of a company's stock to the public, allowing it to raise capital by issuing shares to investors in the open market.