The objective of the book building process is to identify the price that the market is willing to pay for the securities being issued by the Company. The Company and its lead managers specify a price band within which investors can bid. When the issue opens, investors put in bid applications specifying the price and the number of securities bid at that price. The price should be within the price band. The issuer, in consultation with the book running lead manager decides cut-off price which is the price at which the issue gets subscribed
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The process of transforming securities holdings in physical form to those in electronic form through a depository system
Refers to the market where equity or debt is raised from general public investors through an offer of securities. It is called […]
Commission payable to the stock broker for arranging the sale or purchase of securities. Maximum chargeable commission is fixed by the Exchanges.
Shares issued by companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier […]