When a private company for the first time offer share to the public, it is known as an initial public offering. For the growth of any business, it is an important stage. While making an initial public offering, the issuer obtains the assistance of an underwriting firm to determine the security that is to be issued. They are also assisted with the amount of share that needs to be issued and the best offering price, and during what time it needs to be brought in the market.

Some steps need to be followed in the initial public offering process in India. A company must prepare the registration statement, the second step is to prepare the DRHP that is Draft red herring prospectus, 3rd step involves marketing the initial public offering, the 4th step involves getting the approval from SEBI and Stock Exchange, deciding the price band and share number is the 5th step, the 6th step involves making share available to the public, 7 step is about issue price determination, and the last and 8th step is listing and unblocking of funds. The details of every step are given below:

1. A company that wants to begin an initial public offering must submit a registration statement to SEBI. The IPO should include a detailed report of business plans and fiscal health. This IPO will be scrutinized by SEBI and it will involve background checking of the company. The registration statement must fulfill the requirements mentioned and the rules and regulations which are provided.
2. While the approval from SEBI is pending, A preliminary red herring prospectus needs to be created with the help of. The prospectus Should include details of financial record, the speculations of expected share price, and plans. This is provided for prospective investors who will later buy the stocks. The prospectus also has a legal warning about the initial public offering.
3. After the prospectus is made with the help of underwriters, the marketing of the initial public offering takes place. The company officials promote the companies’ IPO across the country and select private buyers and HNIs.
4. once the SEBI approves the registration statement and declares it to be effective it gives A date for IPO to happen. However, there are times when it asks a company to make amendments before approving. And the same prospectors cannot be given to the public without making the amendments which were given by the SEBI. to get listed, the company selects where it intends to sell the shares and in that Stock Exchange, it gets listed.
5. The underwriters decide on the number of shares which need to be sold and the price band of the shares. They issued 2 types of IPO, those are fixed price and book building IPO. In a fixed price issue, the company decides the number of shares which are to be sold and the price of the share issue. And in book building initial public offering, the price of the issue is discovered with the help of big building process and later the company decides the price band and an option is given to investor to choose the price for which they wish to bid for.
6. The shares are available to the public on the date which is mentioned in the prospectus and the IPO form can be filled by investors where they can also specify the price at which they want to bed and then the application is submitted.
7. The price at which the shares are to be allotted to the prospective investors is decided after subscription. Is over, and this is done by the members of underwriting banks and share issuing companies etcetera.
8. The last step is listing and unlocking of funds.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.