India’s IPO market is accelerating, with over 1,000 public offerings expected to hit the primary market over the next two years. With so many companies preparing to go public, it’s no longer enough to ask only which IPO to invest in; investors also need to understand who is driving it behind the scenes.
At the center of every mainboard IPO stands the Book Running Lead Manager (BRLM), who is the lead player responsible for managing the IPO, setting the price band, and ensuring a smooth execution.
This blog offers a clear breakdown of the book running lead manager’s meaning, their roles and responsibilities in an IPO, and how their involvement influences pricing, investor confidence, and the overall success of the issue.
What is a book running lead manager?
The BRLM full form stands for Book Running Lead Manager. It is the underwriter or merchant bank, in case of mainboard IPOs, hired by the issuing company that leads an IPO on its behalf.
Their main responsibility is to manage the book building process, which involves compiling the investors’ bids to determine the final price of the shares, while ensuring regulatory compliance, fair allocation of shares to the investors.
Responsibilities of a Book Running Lead Manager
The BRLM’s responsibilities comprise the entire IPO process, from planning to post-listing:
- Pre-issue phase: The BRLM is responsible for conducting a review of the company’s financial performance to verify all disclosed information. The lead manager and the company decide the structure of the IPO, including the net shares to be offered and the price band. They prepare and file the Draft Red Herring Prospectus with SEBI.
- Bookbuilding and marketing phase: During this phase, the BRLM organises roadshows and presentations to market the IPO to the prospects. Later, they collect and record the bids from investors to measure market demand, based on which the final IPO share price is set. If they are also acting as the underwriter, the BRLM purchases unsold shares if the IPO is undersubscribed.
- Post-issue phase: The BRLM supervises the process of share allocation to successful bidders as per the final price while coordinating with the stock exchange listing of shares for public trading. The BRLM also helps to stabilise the stock price by buying shares on the open market if the price falls.
- Handling regulatory compliance: The BRLM is responsible for maintaining compliance with all regulatory requirements set by SEBI, stock exchanges, and Registrar of Companies (RoC), to ensure a successful IPO.
Importance of Book Running Lead Manager in IPO Success
Hiring a skilled and reputable BRLM is key to a successful IPO for the following reasons:
- Credibility: A reputed BRLM provides credibility to an IPO, reassuring the investors by indicating that the offering is properly vetted.
- Brings in expertise: The BRLM’s experience and expertise in the capital markets allow effective price discovery that helps the issuing company to find a price that balances capital maximisation and market demand.
- Risk management: The BRLMs help in managing risks associated with an IPO, for example, incorrect valuation, non-compliance with regulatory frameworks, or a failed offering.
- Market reach: The BRLM brings in an established network of investors, such as institutional investors, high-net-worth individuals, and retail investors, which significantly provides a better scope for the IPO’s distribution and helps in maximising the funds raised.
Case Studies of BRLM in IPO
- Orkla India IPO, 2025
The ongoing Orkla India IPO, from 29 October 2025 to 31 October 2025, shows how having experienced BRLMs, with ICICI Securities, Citigroup Global Markets India, and Kotak Mahindra Capital, influences the entire IPO process. These institutions coordinate valuation, investor outreach, and pricing to ensure a strong subscription level and a smooth market debut. This case reflects how established financial institutions help mainboard IPOs in maintaining credibility and attracting a wide range of investor participation.
- Paytm IPO, 2021
The Paytm IPO was one of India’s most anticipated listings, which highlighted both the potential and challenges of large-scale offerings. The BRLMs in the IPO, including Morgan Stanley, Goldman Sachs, and ICICI Securities, handled valuation, investor marketing, and global coordination. Even though the stocks faced pressure after the listing, the case shows how the BRLMs influence handled pricing, managed investor sentiment, and guided the company through the complications of going public.
Conclusion
A Book Running Lead Manager is a linchpin in the IPO process. BRLM brings market expertise, regulatory knowledge, and a strong network of investors to ensure that the issuing company receives an appropriate valuation of its shares and successfully raises capital.
While the role is demanding and carries challenges, the right BRLM is an invaluable partner that makes a difference between an IPO’s success and failure.
FAQ‘s
A Book Running Lead Manager (BRLM) is a merchant banker appointed by private companies when they decide to go public. They manage the IPO from the start to the end, by handling valuation, investor connection, regulatory filings, and the final pricing to ensure that the issue runs smoothly.
BRLM stands for Book Running Lead Manager. It is a financial institution that is responsible for managing the book-building and share allocation process of an IPO.
A BRLM is responsible for conducting analysis of the company’s financials, structuring the IPO, drafting the prospectus, marketing the IPO, collecting investor bids, and finalising the share price, while ensuring compliance with market regulations.
The BRLM plays an important role in the IPO process, including valuation, maintaining investors’ network, and ensuring compliance with legal requirements. Therefore, without them, the issuing company may struggle to attract investors or maintain a transparent process.
Yes, the credibility, market experience, and expertise of the BRLM shape the investors’ trust, subscription level, and the overall demand for the IPO. Their skills and management process decide the IPOs’ performance once they’re listed.
The BRLM analyses the investors’ bids to set the final price of the shares, while balancing company valuation with demand. They also oversee fair distribution of shares among the institutional and retail investors, ensuring transparency in the issue.
