Who decides the Price Band?

I strongly think premium for a new IPO should not be more than 20% of face value. Companies with the help of merchant bankers tries to cheat the Investmer by valuing comapny's worth and market value by inflating the price of particular script, which is not justified. SEBI and other regulatory authority should play a major role in deciding a premium on any IPO. SEBI should weigh Investors' interest rather than a Companies' interest.

SEBI SHOULD TAKE INTEREST AS PUBLIC INTEREST

Previously IPO pricing was regulated by the Controller of Capital Issues and due to which the companies could not fix exorbitant issue price. Companies are making IPOs only when the market is in in its highs thereby investors are losing money in many IPOs. SEBI should formulate a policy on fixing issue price with premium duly taking into consideration the net worth/book value of each share along with goodwill and performance of the company only but not based on the short term market momentum. Also, in case of many companies IPOs with high premium are offer for sale by existing large investors only in which case the IPO making company will not get any amount out of IPO. So, without any imporovement in companies financials IPOs are being made at a PE ratios of as high as 75. Even where retail investors are not showing interest in subscribing highly priced IPOs, such IPOs are being suppored by mutual funds and FIs, of course, with the money collected from the retail small investors. This type of fixing IPO pricing should be immediately checked by the Government to avoid huge losses to the general public.

what is basic take by lead manager to determined price per share in ipo .