Loading...

How is the IPO price band decided?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

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.

Comments

Add a public comment...