IPOs
What is Price band?
Hinglish mein padhein: IPO mein price band kya hota hai?
The price band is the range within which investors bid for shares in a book-built IPO, for example ₹300–₹315.
The upper end can be at most 120% of the lower end. Most retail investors bid at the 'cut-off', agreeing to pay whatever final price is set.
The final issue price is fixed after bidding closes, based on demand.
Related terms
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.
- Lot size (IPO)The lot size is the minimum number of shares you must apply for in an IPO; you can apply in multiples of it.
- Cut-off priceBidding 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.