How can you define the life cycle of an IPO prospectus?

Stage 1: Draft Offer document

The Issuer Company and Book Building Lead Manager prepare the "Draft Offer Document". This document is sent to SEBI for review. SEBI will review the document and either ask the lead managers for changes or approval to proceed with IPO processing.

You can find Draft document on official website of SEBI in the section of 'Reports -> Public Issues:And the Draft Offer Documents are filed with SEBI" at: http://www.sebi.gov.in/SectIndex.jsp?sub_sec_id=70

A "Draft Offer Document" is a PDF file that contains information for investors who need to know more about the public issue. It contains information about the company, the management, the risk involved in applying for this issue, the financials of the company and why it is raising money via IPO.

Stage 2 - Offer Document

After the SEBI has cleared the draft offer document, it is called an "Offer Document". The modified version of the 'Draft offer document' that SEBI has approved is called "Offer Document".

The "Offer Document", which is a description of the offer, is sent to the registrar for the issue and to stock exchanges where Issuer Company would like to list.

Stage 3: Red Herring Prospectus

After "Offer Document" is cleared by Stock Exchanges, Issuer Company adds Issue size and the price of the issue (and makes it available to all). Now, the issue prospectus is called "Red Herring Prospectus".

Red Herring Prospectus also can be found on SEBI website at:http://www.sebi.gov.in/SectIndex.jsp?sub_sec_id=72