Initial Public Offering (IPO) is a milestone in a corporation's financial strategy. Studies probing this cardinal activity are diverse. While, post–issue stock performance dominates the IPO literature, valuation and pricing and ownership and structuring issues follow later in that order. IPO research found a firm ground in some of the well-established finance theories like signaling theory and capital structure theory. The effect of institutional investors in various aspects of the IPO process is the theme of a relatively new stream of research on public offerings. While most of the studies are done in the context of US, an equally rich set of publications can be found in other contexts too. Unlike who provides the review based on IPO process, this study reviews the literature on ‘IPO as a financial strategy' by integrating the factors like, underwriter selection involving venture capitalist, reducing informational asymmetries and reducing ownership without loosing control.