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 – 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.