The price band of a book building IPO is the price range in which investors can bid.
The IPO price band is the price range within which the offer price of the shares in an IPO is set.
The price band consists of the floor price and the cap price. The floor price is the lowest, and the cap price is the highest. Investors can submit bids within this price range or price band.
The margin between the price range's lower (Floor) price and the upper (Cap) price may not exceed 20%. The price band can be revised.
For example: In this IPO Popular Vehicles & Services IPO. Then, The company set a price band of Rs 280 to Rs 295 per share for the IPO. This means that investors can bid for shares in the IPO within this price range. After the bidding process is completed, based on the demand for the securities the issuer and lead managers decide the final price.
|
IPO Date |
March 12, 2024 to March 14, 2024 |
|
Listing Date |
March 19, 2024 |
|
Face Value |
₹2 per share |
|
Price Band |
₹280 to ₹295 per share |
Lead managers review the company's financial reports assess the market conditions and then determine the price range for an IPO. The price range is announced by the issuing company in the prospectus. The final price is determined based on the bids received.
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