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Who is a Book Running Lead Manager in an IPO or Public Issue?


In you have subscribed to a public issue or IPO and read the prospectus, you probably could not have missed reading on the Lead Manager or the Book Running Lead Manager to the issue.


Lead Manager's and Book Running Lead Managers (BRLM) are involved with the complete process of an Initial Public Offering or IPO. You cannot launch an IPO without them, which is why you need a solid BRLM and lead managers, if your public issue has to be successful.

What do Lead Managers and Book Running Lead Managers Do?

Who is a Book Running Lead Manager in an IPO or Public Issue?
Prior to the IPO, the Lead Manager ensures the complete due diligence of a company's operations. The complete scrutiny also involves a check on the management, business plans including future business plans, legal aspects etc.
One of the most important jobs of the BRLM and the Lead Managers is to ensure the correctness and accuracy of extremely critical documents that include prospectus and promotional material, including advertisements.

What they also do is to ensure the complete regulatory compliance including those by the Registrar of Companies,Securities and Exchange Board of India and other authorities, including the various stock exchanges.
Along with the management team of an IPO, they may also decide and appoint a Registrar to the public issue, printers, advertising Agency and Bankers to the Offer .


The Lead Manager and the Book Running Lead Manager also ensures marketing strategies for a successful public issue.
After the public issue they ensure that the securities get listed and that the refunds from the IPO are completed successfully. That requires a good coordination with the management and agencies like the registrars, bankers and others.
Why the role of a Lead Manager and a Book Running Lead Manager is important?

The role of a Lead Manager and a Book Running Lead Manager is extremely important for a public issue or IPO. They have to get the pricing of the IPO right, along with compliance and ensure success of the issue. In India, their importance cannot be underestimated. If there is non compliance or negligence in some aspects they could easily be pulled-up by the capital market watchdog, the Securities and Exchange Board of India (SEBI).

In the past the role of Lead Managers has come under close scrutiny. In fact, the country's capital market watchdog has pulled up several BRLMs in the past, which is why they have to doubly check the IPO details honestly and with great integrity.

Read more about: ipo public issue
Story first published: Wednesday, October 15, 2014, 12:06 [IST]
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