The entire process of an IPO takes a few months and the larger the size of the issue, the more complex and lengthy the process. The preparation for an IPO starts at least 6-12 months before the actual announcement of the IPO. Here are 3 important steps that need to be followed before the IPO takes off in a big way.
Once the company has decided that it needs to raise funds through an IPO, the first step will be appointed the merchant bankers to the issue. They are also known as Book Running Lead Manager as they create the book for the stock based on its attractiveness of fundamentals and the potential for growth. The merchant banker will then prepare the offer document and the draft red-herring prospectus (DRHP) with SEBI and the exchanges. The Registrar to the issue has to also be appointed simultaneously since they have a key role to play in the entire IPO process as the default record keepers.