IPO Cut-off Price

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IPO Cut-off price is the share price decided by the company based in the demand of IPO shares.

Cut-off price is the price, finalized by the company, is the price within the Price Band of a book-building IPO. Applying on Cut-off price means the investor is ready to pay whatever price is decided by the company at the end of the book-building process.

When applying at a cut-off price, an investor has to pay the highest price while placing the bid. If a company decides the final price lower than the highest price asked for IPO, the remaining amount is returned to the retail investor.

Answered on 2020-02-26

Frequently Asked Questions

1. Who can apply at a cut-off price in an IPO?
- Retail Individual Bidders (RII)
- Eligible Employees under the Employee Reservation Portion
- Shareholders Bidding under the Shareholders Reservation Portion (subject to the Bid Amount being up to Rs 200,000)
Note: Check the IPO prospectus document to check the eligibility before you apply.
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2. Who is not eligible to apply at a cut-off price in an IPO?
- Non-institutional bidders (NII)
- Qualified Institutional Bidders (QIB)
- Anchor Investor
- Shareholders Bidding under the Shareholders Reservation Portion for the bid amount above Rs 200,000)
Note: Please read the RHP document of the IPO to check the eligibility before you apply.
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IPO Cut-off Price

Frequently Asked Questions

1. Who can apply at a cut-off price in an IPO?

2. Who is not eligible to apply at a cut-off price in an IPO?

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