1. Board Approval and Appointment of Intermediaries

• The company must obtain approval from its Board of Directors to initiate the IPO process.
  
• It appoints key intermediaries such as a merchant banker (lead manager), underwriters, registrars, legal advisors, and auditors.
  
• These professionals guide the company through valuation, documentation, legal compliance, and marketing.
  
• The lead manager conducts a due diligence review of the company’s operations and financials.
  
• An IPO committee may be formed to oversee the execution.
  

2. Preparation of Draft Red Herring Prospectus (DRHP)

• The company, along with its merchant banker, prepares a Draft Red Herring Prospectus (DRHP).
  
• The DRHP contains detailed information about the company’s business, financials, risks, and proposed use of IPO proceeds.
  
• It is filed with the Securities and Exchange Board of India (SEBI) for review and public feedback.
  
• SEBI may ask for clarifications or modifications before approving.
  
• After approval, the final Red Herring Prospectus (RHP) is filed with the Registrar of Companies (ROC).
  

3. Stock Exchange Listing Application

• The company applies for listing with recognized stock exchanges like the NSE or BSE.
  
• It must meet the eligibility criteria set by the exchanges, including financial performance, net worth, and minimum number of shareholders.
  
• Listing approval is a precondition for going public.
  
• Exchanges scrutinize the application to ensure regulatory readiness.
  
• Once approved, the company becomes a listed entity upon successful IPO closure.
  

4. Price Determination and Bidding

• The company decides the pricing mechanism — either a fixed price or a book-building process.
  
• In a book-building issue, a price band is offered, and investors bid within that range.
  
• Based on demand, the final issue price is determined.
  
• The issue is open to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs).
  
• The bidding window typically lasts 3 to 5 working days.
  

5. Allotment, Listing, and Commencement of Trading

• After the IPO closes, shares are allotted to investors based on subscription and category-wise quotas.
  
• Excess applications result in proportionate allotment or refunds.
  
• The company credits shares to investors’ demat accounts.
  
• It files a listing confirmation with the stock exchange, which sets the listing date.
  
• On the day of listing, shares are made available for public trading, and the company officially becomes publicly traded.