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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An agent of the Depository through which it interfaces with the investor. A Depository Participant (DP) can offer depository services only after […]
The total market value of a Company, calculated by multiplying the number of shares issued and outstanding by their current market price.
The minimum number of shares one can bid for in an IPO. Applications will have to be in multiples of the lot […]
In the Indian context the terms debentures and bonds are used interchangeably. A debenture is also an financial instrument representing the loan […]