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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Initial Public Offer
The first public offer of shares by a Company. When a Company makes an IPO, the shares become widely held and there […]
The rate at which the first transaction in a security is struck after the opening of the market.
The minimum number of shares one can bid for in an IPO. Applications will have to be in multiples of the lot […]
: A member of a Stock Exchange who acts as an agent for clients and buys and sells shares on their behalf […]