A lead manager, formally called a Book Running Lead Manager or BRLM, is the merchant banker or investment bank that manages the IPO process for the company. It must be registered with SEBI. Its work includes due diligence on the company, drafting the offer documents, filing them with SEBI, helping to set the price band, marketing the issue to institutions through roadshows, running the book, coordinating with the registrar and exchanges for allotment and refunds, and ensuring compliance until listing. A large issue usually has several lead managers, with one designated as the coordinator. The lead managers sign a due diligence certificate, so they carry legal responsibility for the accuracy of the disclosures, and SEBI can take action against them. They are paid a fee that is a percentage of the issue size. For investors, the track record of the lead manager is a useful quality check: look at how its earlier IPOs performed after listing and whether it had disciplinary issues. The names of the lead managers are on the first page of every RHP, and IPO Bulletin lists them on each IPO page along with the registrar and the contact details.
Example: A Rs 1,000 crore IPO appoints three BRLMs. One of them is the coordinator and handles filings with SEBI, while all three market the issue to institutional investors and sign due diligence certificates.