Based on the following case study, answer the question.

Big Limited is requiring ₹1000 crores for modernisation of its existing projects. A meeting of its finance department head was called with the board of directors to decide how to manage the required funds. It was decided in the meeting that ₹200 crores will be raised immediately by giving privilege to the existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. ₹300 crores will be raised by allotting securities to institutional investors. Half of the balance required funds will be raised by a direct appeal to investors by means of a advertisement in newspapers and rest to issuing houses and stock brokers at an agreed price.

Give the full form of IPO.

Initial Public Offer

The correct answer is option (3) : Initial Public Offer

The full form of IPO is :

3. Initial Public Offer

An Initial Public Offering (IPO) is the first sale of stock by a company to the public. It allows the company to raise capital from public investors.