Question

Arrange the following steps involved in the book building process in the correct order:
(A) Determination of issue price, finalization of basis of allotment, issue of prospectus and allotment of shares
(B) Determination of price and asking for bids along with further revision of bids
(C) Submission of RHP and appointment of syndicate members
(D) Planning an IPO/FPO via Book Building and appointment of Lead book runners

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (B), (A), (D), (C)
• D. (D), (C), (B), (A)

Hint:

Book building = orderly sequence from planning → filing → bidding → allotment.

Answer 1

The Correct Option is D

Step 1: IPO/FPO Planning.
- D: Plan IPO/FPO; appoint lead book runners.
Step 2: RHP Submission and Syndicate Formation.
- C: File RHP; form syndicate.
Step 3: Price and Bid Process.
- B: Determine price; solicit bids; revise if needed.
Step 4: Prospectus and Allotment.
- A: Issue prospectus; allot shares.
Step 5: Correct Sequence.
- D → C → B → A