Arrange the following steps involved in the process of IPO issue in the correct order:
A. Verification by SEBI B. Hiring an underwriter C. Registration for IPO D. Pricing of IPO E. Allotment of shares
Choose the correct answer from the options given below:

Correct option is D

The correct order of steps in the IPO process is as follows:
1. Hiring an Underwriter (B):
· The company appoints an investment bank or underwriter to guide the IPO process.
· Underwriters handle compliance, marketing, and initial pricing of shares.
2. Registration for IPO (C):
· The company files its Draft Red Herring Prospectus (DRHP) with SEBI, containing detailed financials and objectives of the IPO.
3. Verification by SEBI (A):
· SEBI reviews the DRHP for regulatory compliance and transparency, ensuring investor protection.
4. Pricing of IPO (D):
· The company, in consultation with the underwriter, determines the share price or price band through book-building or fixed-price methods.
5. Allotment of Shares (E):
· Shares are allotted to investors based on the subscription level, and refunds are issued to unsuccessful applicants.
Information Booster:
· SEBI ensures the company provides accurate and adequate disclosures to protect investors.
· Over-subscription in IPOs results in pro-rata allotment, and allotment results are published.
Additional Knowledge:
· The book-building method is preferred for pricing IPOs as it captures market demand.
· Post-IPO, the company must comply with stock exchange regulations and disclosure requirements.