It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified by the issuer. 2 lakh and the balance for higher amount applications.Ī 20 % price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding.ĭemand for the securities offered, and at various prices, is available on a real time basis on the BSE website during the bidding period.ġ00 % Applications Supported by Blocked Amount.ĥ0 % of shares offered are reserved for QIBS, 35 % for Non Retail and 15% for Retail Investorsīook Building is essentially a process used by companies raising capital through Public Offerings-both Initial Public Offers (IPOs) and Follow-on Public Offers (FPOs) to aid price and demand discovery. Price at which the securities are offered and would be allotted is made known in advance to the investorsĭemand for the securities offered is known only after the closure of the issueġ00 % Applications Supported by Blocked Amountĥ0 % of the shares offered are reserved for applications below Rs.
This Initial Public Offering can be made through the fixed price method, book building method or a combination of both.
An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement.