Merchant Banking Execution Role - BFS

This position is for Financial services group in Mumbai.

Expe 5 to 12 years

DRHP stands for Draft Red Herring Prospectus, which is a preliminary document filed by a company with the Securities and Exchange Board of India (SEBI) before launching an initial public offering (IPO). Merchant banking in this context refers to the role of merchant bankers in executing the IPO process. Here's a general outline of how merchant bankers execute the DRHP process:

1. Preparation of DRHP: The merchant bankers work closely with the company to prepare the Draft Red Herring Prospectus. This involves gathering financial information, business plans, and other relevant details to create a comprehensive document that outlines the company's financial health, operations, and future plans.

2. SEBI Filing: Once the DRHP is prepared, the merchant bankers file it with SEBI for their review and approval. SEBI reviews the document to ensure that all necessary disclosures are made and that it complies with regulatory requirements.

3. Roadshows and Investor Meetings: Merchant bankers organize roadshows and investor meetings to generate interest in the IPO among institutional and retail investors. These roadshows are conducted in various cities and countries to reach potential investors.

4. Book Building Process: In case of a book-built issue, merchant bankers assist in determining the IPO price through the book-building process. They coordinate with institutional investors to gauge demand and finalize the issue price within the price band specified in the DRHP.

5. Marketing and Promotion: Merchant bankers play a crucial role in marketing the IPO to potential investors. This includes advertising, media outreach, and other promotional activities to ensure maximum subscription to the IPO.

6. Managing Investor Relations: Throughout the IPO process, merchant bankers manage communication with investors, addressing queries, and providing clarification on the company's prospects as outlined in the DRHP.

7. Post-IPO Listing: After the IPO is successfully completed and the company's shares are listed on the stock exchange, merchant bankers may continue to provide advisory services to the company, especially in managing investor relations and market performance.

Overall, merchant bankers act as intermediaries between the company going public and the investing public, facilitating the IPO process from start to finish while ensuring compliance with regulatory requirements and maximizing investor interest.