What is an IPO?
IPO Process , Several steps are involved which is essential before listing its securities. Lets go through these steps in brief.The first step involves hiring of an underwriter or an investor banker, known as book running lead manager (BRLM) who shall go through the financials of the company, and takes the lead in the entire process of fund raising. BRLM prepares a Draft Red Herring Prospectus (DRHP) and submits it to SEBI for approval.After receiving SEBI clearance on the public issue and approval from stock exchanges, BRLM begins distribution of IPO Application Forms through its designated Syndicate Managers.The initial public issue is open for a certain number of days and the bids are updated with the stock exchanges as they are received.Then the Registrar does the fair distribution of shares.The allocated shares are now deposited into the demat accounts of the investors and get listed on the designated stock exchanges on the specified IPO Listing Date.
Read the full Article here: Understanding Initial Public Offer (IPO)