The Brain Behind IPO Magic ... Investment Bankers

- We have an IPO (Initial Public Offering) there is nothing new. IPOs are being discussed at home. Ever since SEBI made IPO money a one-day game, people have started investing in it.

- It can be said that IPO has rained since 2021, due to which investment bankers have recovered 1000 crore IPO fees in 2021.

At first glance, it is difficult to pay Rs 15 crore as fee.

However, IPO (Initial Public Offering) is not a new thing. IPOs are being discussed at home. Ever since SEBI made the IPO money a one-day game, people have started investing in it. There was a time when money deposited in an IPO was stuck for two to three months. Companies that brought in an IPO used people's money without interest and investors waited for the postman. Ever since SEBI has laid down the rules for IPO, people have been filling up IPOs by opening demats in the name of all the members of their household, which has led to a new generation taking interest in the stock market.

Says people who are interested in the stock market should start by filing an IPO. However, the magic of IPO is huge.

Bringing an IPO is not easy for any company. It is easy to do business by collecting people's money but it is very difficult to run under certain rules and keep shareholders together. Under the new rules, each shareholder is a partner according to his share.

Investment bankers do not have much to do with the success of an IPO. His work can be associated with Gore Maharaj performing the marriage ceremony. As Gormaharaj says that whatever happens to the bride and groom, pay my fee.

The magic of IPO is very complicated. The brains of investment bankers are at work behind every company that launches an IPO. How many crores of rupees to bring in an IPO, what to keep its price, under what law will SEBI allow it and what kind of response will the people i.e. the investors give etc. etc. Whose investment bankers charge a hefty fee (in crores of rupees).

According to a report, Rs 1,200 crore has been collected for investment bankers since 2020. Interestingly, even though the fee is one per cent of the amount, it has crossed Rs 1,200 crore.

It can be said that IPO has declined since 2021, due to which investment bankers have recovered 1000 crore IPO fees in 2021. For the first time since 2014, a total of Rs 4,800 crore worth of IPOs have come into the market.

Food delivery company Zomato's Rs 5 crore IPO fee of Rs 3 crore was paid to investment bankers. IPOs like Paytm, Nykaa, etc. also paid a fee of one per cent according to their size. The biggest LIC-IPO is coming next year. One thousand crore IPOs are now becoming common but at the opposite end there is also competition among investment bankers. Everyone has increased their fees. The heroine has paid Rs 15 crore as IPO fee.

As many as eight companies are waiting for the approval of SEBI in the pipeline of IPO.

At first glance, it may be said that paying a fee of Rs 15 crore is a bit of a hassle. The fees are to be paid after the IPO.

The fact is that investment bankers have a key role to play in obtaining capital finance. Such bankers present a flowery pink picture of the company to the public so that people can save their money and expand the company by generating revenue from it.

The risk factors shown by the investment bankers are that each company prints in very small points (letters) in such a way that it can be read through a magnifying glass. However, it is now being considered to implement a proposal to print the risk factors at the outset of the IPO form in legible letters (15 points in black) so that everyone can read it easily and think about it before investing.

Here are the names of six well known investment bankers. Kotak, Morgan Stanley, BofA Securities, Citi, ICICI Securities and JM Financials.

Investment bankers are also found in business loans ...

Banks have expanded the reach of investment bankers. Every bank has mini investment bankers. If someone wants a business loan, this banker goes to the banks on your behalf. Who asks you for account details and then prepares your own draft. Then show the loan file to the bank which has its connection. According to this file, it is decided how much loan the customer can get. It shows the file to two to four banks. If the customer gets a loan, the customer does not have to pay a fee but the bank pays him a commission. This system is very running. In which all the three parties i.e. the borrower, the lender and the investment banker all benefit.