What does listing of IPO means and how is it done?
The securities of the company that are listed on an IPO are available for trading on recognised stock exchanges. Investors can trade company shares after the listing. A process must be followed to ensure a successful listing.
- A Lead Manager is appointed by an issuer.
- For a due diligence certificate, work with LM
- Register with SEBI.
- To initiate an IPO, you must get approval/disapproval by SEBI
- SEBI will approve the preparation of listing documents, including DRHP, with the assistance of LM.
- Appoints registrars and banks to act as intermediaries.
- Advertise for the IPO.
- You can decide the price per share using either fixed price or book-building mode.
- The application window is generally open for a few days to subscribe and closes at a predetermined time.
- The registrar of the public sale issues shares to investors after the subscription window closes.
The shares will be available for trading at stock exchanges upon their listing.