How is the IPO price band decided?

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The IPO price band is decided by the issuer company, in consultation with the lead manager, based on various qualitative and quantitative factors. The basis for the IPO price band and the offer price are mentioned in the offer document.

Below are some of the key factors taken into consideration while arriving at the IPO price:

  • Company strengths.
  • Earnings per share.
  • Company's financial performance.
  • Industry Comparison.
  • Return on Net Worth.


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