Through book building method of IPO, the company assesses the demand and declares a price range for the bid.
The bookbuilding process is a pricing method in an initial public offering (IPO). The price at which the shares will be offered is determined based on investor demand. In the book-building method of issuance, the issuing company announces a price range for the IPO (e.g. Rs 75 to Rs 80 per share) within which bids for the IPO are accepted. In this case, investors can choose a price between Rs 75 and Rs 80 when they apply for an IPO.
The bookbuilding process is designed to provide a transparent and effective pricing mechanism favourable to both the issuer and the investor. To learn more about the book-building process, click here.
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