Professional Documents
Culture Documents
Presentation on:-IPO Process: Presented By: Rahul Gakhreja
Presentation on:-IPO Process: Presented By: Rahul Gakhreja
The first public offering of equity shares or convertible securities by a company is known as Initial Public Offering (IPO). Whereas, all the subsequent public offering are known as Follow-on Public Offering.
Reasons to go Public
Capital for fresh investment Beneficial for the follow-on issues Enhancing the reputation & visibility Better Valuation of the company Providing liquidation to the existing shareholders Corporate Governance
Parties Involved
Issuer Company Lead Managers Syndicate Members or Underwriters SEBI Registrar Investor
I.P.O. Process
Issuer Company - IPO Process Initialization Lead Manager's - Pre Issue Role - Part 1 SEBI Prospectus Review Lead Manager - Pre Issue Role - Part 2 Investor Bidding for the public issue
Prepare draft offer prospectus for IPO. File draft offer prospectus with SEBI. Road shows for the IPO.
Lead Manager - Pre Issue Role - Part 2 Submit the Offer Prospectus Decide the issue date & issue price band Modify Offer Prospectus with date and price band. Document is now called Red Herring Prospectus. Red Herring Prospectus & IPO Application Forms distributed to investors
Based on the bids received, lead managers evaluate the final issue price.
Lead managers update the 'Red Herring Prospectus' with the final issue price and send it to SEBI and Stock Exchanges.
Receiving application forms & cheques from Syndicate members. They feed applicant data & additional bidding information on computer systems. Send the cheques for clearance. Find all bogus application.
Once all allocated shares are transferred in investors dp accounts, Lead Manager with the help of Stock Exchange decides Issue Listing Date. Finally share of the issuer company gets listed in Stock Market.
QUERIES.If any!!