Ipos Follow A General Pattern

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IPOs follow a general pattern

 Underwriting firm is appointed to determine the legal and financial


details of the public offering.

 Draft prospectus is prepared and sent for SEBI’s approval. Known


as a preliminary prospectus, or red herring.
Contd…
 After SEBI’s approval the final prospectus, which details the
issue's price, restrictions and benefits, is issued to those who
purchase the securities.

 This final prospectus is legally binding for the company.

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