Public Issue refers to the process by which a company offers its shares or securities to the general public for the first time to raise capital. This is a common route for companies looking to expand operations, reduce debt, or finance new projects. A public issue allows investors to become shareholders, offering them an opportunity to participate in the companyís growth and potential profits.

There are two main types of public issues ó Initial Public Offering (IPO) and Follow-on Public Offering (FPO). An IPO occurs when a company sells its shares to the public for the first time, while an FPO happens when an already listed company issues additional shares to raise more funds. Both types are regulated by the Securities and Exchange Board of India (SEBI) to ensure transparency, fairness, and investor protection.

Before launching a public issue, the company must file a Draft Red Herring Prospectus (DRHP) with SEBI, providing detailed information about its financials, business model, risks, and objectives. Once approved, the company decides the issue price or price band, issue size, and subscription dates. Investors can then apply for shares through the book-building process or fixed-price method.

Public issues play a vital role in the Indian capital market by helping companies raise long-term funds and offering investors a chance to diversify their portfolios. However, investors should carefully read the prospectus and assess the companyís fundamentals before investing. Market conditions, valuation, and industry trends should also be evaluated to make informed decisions. Public issues thus bridge the gap between corporate capital requirements and public investment opportunities, promoting economic growth and capital market participation.