Initial Public Offering Process in India

The IPO Process in India

The IPO process in India consists of the following steps: –

  • Appointment of merchant banker and other intermediaries
  • Registration of offer document
  • Marketing of the issue
  • Post- issue activities

Appointment of Merchant Banker and Other Intermediaries

One of the crucial steps for successful implementation of the IPO is the appointment of a merchant banker. A merchant banker should have a valid SEBI registration to be eligible for appointment.

A merchant banker can be any of the following – lead manager, co-manager, underwriter or advisor to the issue.

Certain guidelines are laid down in Section 30 of the SEBI Act, 1992 on the maximum limits of intermediaries associated with the issue:

Size of the Issue No. Of lead Managers
50 cr. 2
50 – 100 cr. 3
100 – 200 cr. 4
200 – 400 cr. 5
Above 400 cr. 5 or more as agreed by the board

The number of co- managers should not exceed the number of lead managers.

There can only be one advisor/consultant to the issue.

There is no limit on the number of underwriters.

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