- Also called Book Running Lead Managers (BRLM) or Lead Managers (LM)
- Help companies raise money in the primary market
- Assist companies with various aspects of the IPO process. Full list here
In which aspects do merchant bankers help in IPO process?
- Conduct due diligence on the company filing for an IPO, ensure their legal compliance and issue a due diligence certificate.
- Work closely with the company and prepare their listing documents, including Draft Red Herring Prospectus (DRHP)
- Underwrite shares
- Help the company arrive at the price band for the IPO
- Help the company with roadshows, which is like a promotional/marketing activity for the company’s IPO
- Appointment of other intermediaries, namely, registrars, bankers, advertising agencies, etc.
- Make various marketing strategies for the IPO issue
Examples
- Karvy, Axis Bank, Edelweiss Capital
Sources