An initial public offering (IPO) is one where companies offer ownership to investors by raising capital and list their shares on the stock exchange. It can be a fresh equity offer when a company needs capital, or an offer for sale when existing investors of the company intend to part sell their stake, and/or a combination of both. For instance, in the case of Life Insurance Corporation of India (LIC), the Government of India being the sole promoter, is offering to sell 3.5 per cent stake as part of its disinvestment plan.