The article discusses how venture capital firms in India play a role in initial public offerings (IPOs). It explores whether IPOs backed by venture capitalists are priced differently and if this indicates higher quality. The study shows that IPOs with venture capital backing have less underpricing, suggesting they are of better quality. This is because venture capitalists add value to the companies they invest in, leading to a higher IPO price. Venture capitalists prefer IPOs as an exit strategy because they can get a higher valuation per share compared to other exit options.