Lead Managers start disclosing IPO track record

In a welcome move that could help potential investors take an informed decision on Initial Public Offers (IPO), the lead merchant bankers have begun disclosing the track record of IPOs managed by them earlier. This disclosures will form important input while deciding whether to invest in upcoming IPO.

The move holds significance as in past many IPO had met with disaster listing and in some cases Lead mangers role is also being questionable.

Early this year, SEBI made it compulsory for the merchant bankers to disclose the track record of the previous offers managed by them and share the same with the prospective investors of any new IPO being handled by them.

Edelweiss Capital, CITI and Morgan Stanly, the three merchant bankers of the upcoming IPO of commodity bourse MCX, have made public the details of the IPOs managed by them in the past.