CS Professional · Strategic Management and Corporate Finance · Role of Intermediaries in Fund Raising
Sundaram Textiles Ltd plans an IPO. Which of the following is a function that the lead manager performs but that the registrar to the issue does NOT ordinarily perform?
Coordinating intermediaries and advising on offer structure and pricing is a lead manager function. Maintaining applicant records, finalising allotment records, refunds and credit of shares to demat accounts are registrar activities, so those options are not the distinguishing lead manager role.
- AFinalising the basis of allotment records and processing refunds
- BMaintaining the database of applicants and issuing allotment advice
- CCoordinating with other intermediaries and advising on offer structure and pricing strategyCorrect
- DDispatching credit of shares to demat accounts of allottees
Explanation
Structuring the offer, coordinating intermediaries (underwriters, bankers, registrar) and advising on pricing are lead manager functions. Applicant database, allotment records, refund processing and share credit are post-issue processing tasks handled by the registrar. The other options are therefore registrar functions.
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