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HI Friends,

I am just adding some explanation for the above answer with example.

In Book building process company will decide the price band i.e. maximum price and minimum price(Floor price).
For example SBI Coming up for IPO, decided price band as Minimum 10 and maximum is 100. in this case Investor has the opportunity to bid and he/she quoted or expressed his willingness to buy share @ 10 (Floor Price) and 100 is maximum price.

Cut-off price : Example

In this case company will decide the price of the share and investor buy the share at whatever the price decided by the company is called as cut-off price.

Example: SBI decided to issue it''s shares @ 250/- and investor doesn''t have option for Bid and ready to pay whatever the price decided by the company i.e.250 is called as cut-off price.