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A Direct Public Offering raises funds without the use of an underwriter or a broker-dealer business. Such direct public offers are often useful for small and medium-sized businesses and nonprofit organizations seeking to raise cash directly within their local community rather than via financial institutions such as banks and venture capitalists.

It's like building your own car from the ground up, and these Direct Public Offerings adhere to the spirit of crowd fundraising; nevertheless, they are subject to certain regulatory scrutiny and must be registered at the state level.

As a result, certain DPOs are being carried out using crowd financing platforms. Such firms are not generally traded publicly and are not subject to the reporting requirements of a securities board. However, the firm may later decide to list its stock on a public exchange or over-the-counter.

Stocks are delisted when they are permanently removed from the stock market. Promoters do this to enhance their interest in the firm or when it is about to be merged or purchased. The procedure, though, can take six to eight months. This raises the value of the stock, and as soon as word of the delisting spreads, investors rush to purchase these stocks in order to capitalize on short-term profits.

Those who currently own shares, on the other hand, should tender their shares if the firm is offering a decent price and you are unsure about the company's future. It is difficult to sell shares of an unlisted firm in the market


  • A public listing provides value and prominence, as well as increasing employee appeal.
  • It provides the opportunity to employ shares to leverage acquisitions, as well as an exit option for the original founders and investors.
  • In comparison to a typical IPO, there are less regulatory constraints.
  • The issuing firm has a lot more say over the DPO.
  • DPOs are not affected by market circumstances, and no brokerage business is required.
  • Shares can be sold on the open market through a variety of channels, including the internet and direct mail.
  • Such non-registration-required offers can raise cash more rapidly and inexpensively.
  • Share price discovery and a launching platform for additional capital raising.
  • Enhanced visibility.
  • Gain access to a large network of BSE trading members.
  • Increasing access to investment capital
  • Raise funds from the company's own community, which includes small, non-wealthy investors.
  • There is no need to buy or employ an expensive/potentially dangerous shell corporation. This helps to prevent the unforeseen dangers that such reverse mergers entail.
  • DPOs are significantly less expensive than IPOs.
  • It enables the use of shares to finalize purchases.
  • To recruit and retain employees, provide stock options.

Documents Required

  • Any and all state regulatory clearance.
  • A disclosure statement known as an offering memorandum or prospectus that offers comprehensive information to potential investors.

Type of Delisting

  • Voluntary delisting occurs when a company decides to remove security on its own.
  • Compulsory delisting occurs when a company's securities are withdrawn from a stock exchange as a punitive action for failing to make filings or comply with the conditions outlined in the Listing agreement, as defined by the SEBI (Delisting of Securities) Regulations, 2009