Ever watched a company list on the stock market and wondered,
“What happened behind the scenes for months before this moment?”
1️. The Big Decision: “Let’s Go Public”
A company does not wake up one morning and file for an IPO.
It usually starts with internal conversations like:
“Should we raise money from the public?”
“Are we ready to be transparent at a national level?”
This stage is all about planning. Nothing is filed yet.
2️. Building the IPO Squad
Before anything reaches SEBI or the exchanges, the company assembles its IPO team:
- merchant bankers
- lawyers
- auditors
- compliance specialists
Think of it as forming an expert panel that ensures everything is fair, transparent, and well-documented.
3️. Creating the DRHP: The Company’s Storybook
The Draft Red Herring Prospectus (DRHP) is like a full autobiography of the company.
It includes:
- who they are
- how they operate
- financial history
- risks
- what they plan to do with the money
This is a disclosure document, not marketing material.
4️. SEBI’s Review: The Reality Check
SEBI reviews the DRHP carefully.
If something is unclear, they ask questions.
The company responds, adds more details, and ensures everything is transparent.
This stage is about investor protection, not approvals or rejection.
5️. Investor Roadshows: “Here Is What We Do”
Once the DRHP is cleared, the company starts roadshows.
These are informational sessions where the company explains its business to institutions and analysts.
It is like saying:
“Here is what we do. Here is how our business works.”
No promises. No predictions. Just information.
6️. Price Band and Book Building: The Bidding Window
The company sets a price band.
Investors place bids.
Demand is recorded.
This entire process happens within a strict regulatory framework.
There is no guarantee, only transparent bidding.
7️. Allotment and Final Prospectus: The Final Touch
Once bidding closes:
- a final price is determined
- allotments are processed
- refunds, if any, are issued
The company then files the final prospectus, which is a complete version of the offer document.
8️. Listing Day: The Moment Everything Goes Live
On listing day, the company officially becomes a publicly traded entity.
From this point, its share price moves based on market participants and open trading activity.
It is the beginning of a new chapter, not the end of the story.
Disclaimer: Alice Blue Disclaimer on Financial Services and Trading Risks