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Role of a Lead Manager in IPO

Updated on March 11, 2023

Lead manager pays an integral role in the success of an IPO. Lead managers are appointed by a company while coming out with an IPO and their role is extensive in the pre-issue and the post-issue process.

Pre-issue role of a lead manager includes:
a. Due diligence of the company
b. Preparing the draft prospectus
c. Advertising the issue and related details
d. Compliance with the regulations with ROC, SEBI, and other stock exchanges.
e. Drawing up marketing strategies for the IPO
f. Appointing the various intermediaries for the IPO like the merchant banker, Registrar for the IPO, advertisers for the IPO, etc.

Role of the Lead manager in IPO – Post-Issue

Post-issue role of a lead manager includes:
a. Managing the escrow accounts
b. Co-ordinating with the non-institutional investors
c. Intimation of the allocation of securities
d. Issuing refunds to the bidders if applicable
e. Finalizing the listing of shares on stock exchanges
f. Transfer of shares in the Demat account of investors