Primary Market » Issue of Shares
What is a Price Band in a book built IPO?
The prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. In other words, it means that the cap should not be more than 120% of the floor price. The price band can have a revision and such a revision in the price band shall be widely disseminated by informing the stock exchanges, by issuing a press release and also indicating the change on the relevant website and the terminals of the trading members participating in the book building process. In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding ten days.
- What is minimum number of days for which a bid should remain open during book building?
- Can open outcry system be used for book building?
- Can the individual investor use the book building facility to make an Application?
- How does one know if shares are allotted in an IPO/offer for sale? What is the Time frame for getting refund if shares not allotted?
- How long does it take to get the shares listed after issue?
- What is the role of a 'Registrar' to an issue?
- Does NSE provide any facility for IPO?
- What is a Prospectus?
- What does 'Draft Offer document' mean?
- What is an 'Abridged Prospectus'?
- Who prepares the 'Prospectus'/'Offer Documents'?
- What does one mean by 'Lock-in'?
- What is meant by 'Listing of Securities'?
- What is a 'Listing Agreement'?
- What does 'Delisting of securities' mean?
- What is SEBI's Role in an Issue?
- Does it mean that SEBI recommends an issue?
- Does SEBI tag make one's money safe?
Click Here for INDIAN STOCK MARKET TIPS
