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Intermediaries in an Issue

Updated on March 5, 2023

Some of the key intermediaries in any IPO are:

Merchant Bankers – They are in charge of conducting due diligence in the preparation of the offer document that contains all relevant information about the offer and the company. Merchant bankers are also responsible for meeting all the legal compliances of the issue as well as marketing the same to the investors.

Registrars – The Registrars of the issue are in charge of the process of IPO including collecting IPO applications, finalizing the basis for allotment, issuing allotment letters to investors, dispatching refunds and credit of shares to allotted in their Demat account.

Bankers – The bankers of the issue are responsible for the movement of funds in the IPO right from collecting of funds to dispatch of refunds providing the status of funds collection to the Registrars to help them in finalising the basis of allotment

Underwriters – These are the risk takers of the IPO and are responsible to meet the shortfall of the funds in case the IPO is undersubscribed.