Updated on March 10, 2023
Any IPO has various participants, including investors, SEBI, stock exchanges, issuer, etc.
The term issuer technically means an entity that is responsible for developing registering and selling securities. However, issuers are more commonly referred to as companies that are offering their shares for subscription through IPO (Initial Public Offer). The purpose of issuing these securities can be to fund the expansion of the business or a new division of the business, invest in a subsidiary, increase public subscription in the capital of the company, etc. These issuers sell their securities in the primary market through the IPO for a limited period.
What is the role of an issuer?
The issuer is responsible for the issue of securities to raise adequate finance through public subscription. Furthermore, the issuer is also responsible for ensuring the proceeds received are utilised towards the purpose as stated in the offer document. They are also responsible for appointing the participants of the issue like the underwriters, merchant banks, registrar, etc after due diligence.