IPOs
What is Cut-off price?
Hinglish mein padhein: IPO mein cut-off price kya hota hai?
Bidding at the cut-off price means you agree to buy at whatever final issue price is decided within the band. Only retail and employee bidders can choose it.
Because the final price is usually the top of the band, the amount blocked for a cut-off bid is calculated at the upper price.
Bidding at cut-off avoids your application being rejected for bidding too low.