What is the process of filing for an IPO?
By purchasing all or a portion of the IPO shares and selling them to the public, a merchant banker or book-running lead manager (BRLM) underwrites the company's shares. The bank assists the company during the DRHP, IPO roadshow, and due diligence phases of the IPO process. The transactional risk is assumed by the underwriters.
Companies must submit an IPO application to SEBI, the market regulator. The specified documents must be included in the application for the IPO vetting process. It contains the company's annual reports, the DRHP, and information about the promoters. Rs 50,000 is the initial listing charge. The paid-up share capital determines the subsequent annual listing.
The IPO is then promoted by the underwriters. Prices are frequently lowered from their actual value to pique investor interest. Advertising is often used in marketing to inform consumers about a company's product or service. The IPO roadshow is another name for this procedure. Following the selection of the price range, the merchant banker or share offer underwriter determines the IPO price. The public may subscribe to the company's shares for a period of three days. The firm starts trading on the stock exchange at a posted price on the day of the IPO, which is determined by the level of interest in the issue in the market.
