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IPO
Managers - Lead Manager's, IPO Registrar, 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 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.
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.
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 etc.
Some of the popular IPO Registrars in India Financial Market are:
Link
Intime India Private Limited - IPO Registrar
http://www.intimespectrum.com/
Karvy Computershare Private Limited - IPO Registrar
http://karisma.karvy.com/
Bigshare Services Pvt. Ltd - IPO Registrar
http://www.bigshareonline.com/
Cameo Corporate Services Limited - IPO Registrar
http://www.cameoindia.com/
Enam Securities Private Limited - IPO Registrar
http://www.enam.com/
Aarthi Consultansts Pvt Ltd. - IPO Registrar
http://www.aarthiconsultants.com/
Ankit Consultancy Private Limited - IPO Registrar
http://www.ankitonline.org/
Mondkar Computers Private Limited - IPO Registrar
http://www.mondkarcomputers.com/
India Infoline Limited - IPO Lead Manager
http://www.iiflcap.com/
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. 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:
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Name of the investor.
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Investor Category – Individual, Corporate, NRI,
FII, or Mutual Fund etc.
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Numbers of Equity Shares bid for.
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Bid Amount.
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Bid cum Application Form number.
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Whether Margin Amount has been paid upon
submission of Bid cum Application Form.
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Depository Participant Identification Number and
Client Identification Number of the beneficiary account of the Bidder.
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. |
