IPO Managers

by khalid on 24/06/2010 · 1 comment

India’s IPO market has emerged as the eighth largest in the world. Initial Public Offer(IPO)’s in India are managed by IPO Managers. IPO Managers are financial organizations registered with stock exchanges and SEBI. They are categorized broadly as Lead Manager’s, IPO Registrar and Syndicate Members.

1. Lead Managers:- 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 Draft Red Herring Prospectus (DRHP) and get it approve by SEBI. SEBI contact lead managers for any irregularities or lapses in DRHP and ask them to clarify, add or review certain sections of the document. 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.

2. IPO Registrar:- 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.

Some of the popular IPO Registrars in Indian Financial Market are:-

Link Intime India Private Limited
Karvy Computershare Private Limited
Bigshare Services Pvt. Ltd
Cameo Corporate Services Limited
Enam Securities Private Limited
Aarthi Consultansts Pvt Ltd.
Ankit Consultancy Private Limited
Mondkar Computers Private Limited
India Infoline Limited

3. Syndicate Members (or The Members of the Syndicate):- 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.

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.

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

{ 1 trackback }

Previous post:

Next post: