Who is the lead manager in merchant banking?
The lead manager or merchant banker is a SEBI registered financial institutions. They play the most critical role in the IPO process. The book running lead manager work closely with the company from day one until the IPO shares get listed at the stock exchanges.
What are the responsibilities of a merchant banker as lead manager?
The lead merchant banker, who is responsible for verification of the contents of a prospectus or the Letter of Offer in respect of an issue and the reasonableness of the views expressed therein, shall submit to the Board at least two weeks prior to the opening of the issue for subscription, a due diligence certificate …
What is the function of lead manager?
They are known as Book Running Lead Manager and Co Book Running Lead Managers. Their main responsibilities are to initiate the IPO processing, help company in road shows, creating draft offer document and get it approve by SEBI and stock exchanges and helping company to list shares at stock market.
Who are underwriters in IPO?
An “underwriter” is the investment bank who buys the shares from the company and resells them to the public. The “bookrunners” are the lead underwriters, who are in charge of the process.
What do you mean by merchant banker?
Merchant banker is a person who provides assistance for the subscription of securities. The merchant banker plays an important role and carries a lot of responsibilities like, private placement of securities, managing public issue of securities, stock broking, international financial advisory services, etc.
What is the minimum underwriting obligation of merchant banker?
5%
3 In respect of every underwritten issue, the lead merchant banker(s) shall undertake a minimum underwriting obligation of 5% of the total underwriting commitment or Rs. 25 lacs whichever is less.
Who can be a lead manager to corporate capital issue?
Lead managers are independent financial institution appointed by the company going public. Companies appoint more then one lead manager to manage big IPO’s. They are known as Book Running Lead Manager and Co Book Running Lead Managers.
Who can be a lead manager to IPO?
IPO Lead Managers are SEBI registered independent financial institutions appointed by the companies to help them with raising funds through IPO and getting listed at stock exchanges. Lead manager manages the IPO process end to end.