IPOs tantalize with promises of overnight wealth, drawing droves to India’s vibrant bourses. Before you apply, master these essentials: Grey Market Premium (GMP), registrar functions, and Book Running Lead Manager (BRLM) roles. Knowledge here averts costly pitfalls.
In the shadows of formal markets, GMP trades unlisted shares at premiums. A ₹100 IPO with ₹40 GMP signals possible ₹140 listing hopes. Yet, it’s sentiment-driven guesswork, outside SEBI’s purview. Realities diverge: hyped GMPs underwhelm, unheralded ones dazzle.
Registrars orchestrate the nuts-and-bolts: application tallying, equitable allotments, refunds, demat crediting. Trusted names like MUFG Intime and KFin Technologies uphold transparency, making processes foolproof amid frenzy.
BRLMs are the visionary directors – think HDFC Bank or SBI Capital. They blueprint issue parameters, price wisely, forecast subscriptions. Through roadshows and investor schmoozing, they hype the offer, aligning underwriters, registrars, and more for triumph.
Insiders note these roles’ interdependence fuels IPO hits. Crucially, transcend GMP fixation. Probe RHPs on SEBI/NSE/BSE for business viability, earnings track, liabilities, outlooks. Shun gossip; embrace facts and risk assessment for prudent plays.