FAQ

What is the role of Lead Managers in an IPO?

Lead managers are independent financial institution appointed by the company going public. Companies appoint more then one lead manager to manage big IPO’s. They are known as Book Running Lead Manager and Co Book Running Lead Managers. Their main responsibilities are to initiate the IPO processing, help company in road shows, creating draft offer document and get it approve by SEBI and stock exchanges and helping company to list shares at stock market.

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What is the role of registrar of an IPO?

Registrar of a public issue is a prime body in processing IPO’s. They are independent financial institution registered with SEBI and stock exchanges. They are appointed by the company going public. Responsibility of a registrar for an IPO is mainly involves processing of IPO applications, allocate shares to applicants based on SEBI guidelines, process refunds through ECS or cheque and transfer allocated shares to investors Demat accounts.

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Who decides the date of the issue?

Once ‘Draft Prospectus’ of an IPO is cleared by SEBI and approved by Stock Exchanges then it’s up to company going public to finalize the date and duration of an IPO. Company consults with the Lead Managers, Registrar of the issue and Stock Exchanges before decides the date.

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Who decides the Price Band

Company with help of lead managers (merchant bankers or syndicate members) decides the price or price band of an IPO. SEBI, the regulatory authority in India or Stock Exchanges do not play any role in fixing the price of a public issue. SEBI just validate the content of the IPO prospectus. Companies and lead managers do lots of market research and road shows before they decide the appropriate price for the IPO. Companies carry a high risk of IPO failure…

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What is an IPO

IPO or Initial Public Offer is a way for a company to raise money from investors for its future projects and get listed to Stock Exchange. Or An Initial Public Offer (IPO) is the selling of securities to the public in the primary stock market. Company raising money through IPO is also called as company ‘going public’. From an investor point of view, IPO gives a chance to buy shares of a company, directly from the company at the price…

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