IPO's in India are managed by IPO Manager's. IPO Manager's are financial organizations registered with stock exchanges and SEBI. They are categorized broadly as Lead Manager's, IPO Registrar and Syndicate Members (or The Members of the Syndicate).
Lead managers are independent financial institutions appointed by the company going public to manage the IPO. They are the main body responsible for most of the IPO processing.
Companies planning for IPO (also known as Issuer Company) first approaches or appoint lead managers. Lead managers examine company documents including financial documents, documents relating to litigation like commercial disputes, patent disputes, disputes with collaborators, etc. and other materials, in connection with the finalization of the draft red herring prospectus for the IPO.
Lead manages are responsible to write the Red Herring Prospectus (RHP) and get it approve by SEBI. SEBI contact lead managers for any irregularities or lapses in RHP and ask them to clarify, add or review certain sections of the document.
Lead managers certifies to SEBI that all the disclosers made in Draft Red Herring Prospectus are true, correct, adequate and comply with SEBI guidelines to help investors in making a well-informed decision.
Issuer Company with the help of lead manger, appoints underwriters or syndicate members for the IPO. Lead managers are responsible for examining the worth of underwriters and there capabilities to buy the shares and assure the same to SEBI.
In brief Lead Manager's responsibilities include, initiate the IPO processing, write draft herring prospectus and get it approve by SEBI, help company in selling the IPO Shares and road shows, help company in finalize the issue price, issue opening & closing dates, listing date etc.
Lead Manager's are also known as Book Running Lead Manager and Co-Book Running Lead Managers. Issuer Company can appoint more then one lead manager to manage big IPO's i.e. Reliance Power IPO came in Jan 2008 had 10 Book Running Lead Managers.
Some of the popular lead managers in India Financial Market are:
DSP Merrill Lynch Ltd, ICICI Securities Ltd, Almondz Global Securities Ltd, IL & FS Investmart Securities Ltd, SBI Capital Markets Ltd, ABN AMRO Securities (India) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt ltd, J P Morgan India Pvt Ltd, JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital Company Ltd, Macquarie India Advisory Services Pvt Ltd, SBI Capital Markets Ltd, UBS Securities India Pvt Ltd etc.
IPO Registrars are independent financial institutions registered with stock exchanges and appointed by the company going public for mainly to keep record of the issue and ownership of company shares.
Responsibility of a registrar at the time of IPO involves, processing of IPO applications, allocate shares to applicants based on SEBI guidelines, process refunds and transfer allocated shares to investors demat accounts.
Investors can contact the Registrar to the Issue in case of any pre-Issue or post-Issue related problems such as non-receipt of letters of allotment, credit of allotted shares in the respective beneficiary accounts, refund orders etc.
Investor should provide following detail to the registrar for quick resolution of quires:
The full name of the sole or First Bidder, Bid cum Application Form number, Bidders Depository Account Details, number of Equity Shares applied for, date of bid form, name and address of the member of the Syndicate where the Bid was submitted and cheque or draft number and issuing bank thereof.
Name and contact information of IPO registrar is published in the IPO forms, Issue prospectus ect.
Some of the popular IPO Registrars in India Financial Market are:
Syndicate members are commercial or investment banks responsible for underwriting IPO's. Syndicate members are usually registered with SEBI or registered as brokers with BSE / NSE Stock Exchanges.
They work as intermediaries for Issuer Company and the buyers of the IPO stocks. Investors submit their bids for IPO shares through Syndicate Members appointed by the Issuer Company. They are also known as 'The Members of the Syndicate'.
The Members of the Syndicate circulate copies of the Red Herring Prospectus along with the bid cum application form to potential investors. They are also responsible for accepting the bids, payments and application forms for the public issue.
After receiving the bid for IPO Shares from an investor, Syndicate Member enters bidding detail into the electronic bidding system and generates a Transaction Registration Slip ("TRS") for each price and demand option and give the same to the bidder.
The Bidder can make the revision to the bid any number of times during the Bidding Period. However, for any revision(s) in the Bid, the Bidders should use the services of the same member of the Syndicate through whom he or she had placed the original Bid.
At the time of registering each Bid, the members of the Syndicate enters the following details of the investor in the on-line system:
The Members of Syndicate deposit all the money received from investors to the Escrow Account opened by the Issuer Company.
The Bid cum Application Form along with other supporting documents are then send to the registrar of the issue for further processing.