An Initial Public Offer (IPO) is a means of collecting money from the public by a company or organization for the first time in the market to fund its projects and operations. In return, the company gives the share to the investors in the company.
In an IPO, the Lead Managers generally decide the price of the issue. In a book building offer, the syndicate members decide the indicative price range and the investors decide the price of the issue through a tender method.
A draft prospectus provides the information on the financials of the company, promoters, background, tentative issue price and so on. It is filed by the Lead Managers with the Securities and Exchange Board of India (SEBI) to provide issue details. Overview of the draft prospectus can be seen on their official website www.sebi.gov.in The final prospectus has to be printed after obtaining the clearance from SEBI and the Registrar of Companies (ROC).