STEP 1 - A prospectus is an essential disclosure document that a company has to issue at the time of issuing investment securities to the public. These formal documents provide detailed information to prospective investors about mutual funds, bonds, stocks, and other investment offerings to the public.

STEP 2 - After issuing prospectus , applications are invited for investing in the company and people accordingly subscribe to shares . Minimum subscription prescribed by SEBI is 90 %

STEP 3 - On basis of application money received , shares are allotted to people . Firstly allotment gets due in books of company and then company receives allotment money on the due date .

STEP 4 - After allotment of shares , company invites call money , Call money can be called either in first call as a whole or in first and second call, just like allotment money , call money also gets due first and then paid .