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Issue Price

Final price at which IPO shares are allotted — equals the upper band on book-built issues for retail bidders who bid at cut-off.

Pricing & Structure

Issue price (also called final issue price or cut-off price for that issue) is the price at which IPO shares are actually allotted. It is determined by the book-building process — the highest price at which the entire issue can be sold across all categories, based on the demand book the BRLM compiled during the bidding window.

For book-built issues, the final issue price for retail bidders who bid at cut-off is the upper band (or whatever lower price the book settles at). For NII / HNI and QIB bidders who specified a particular price, allotment is at the final settlement price regardless of what they bid — provided their bid price was at or above the settlement.

Issue price is locked in once subscription closes and the book-building process completes. The RHP often disclosed the issue size in number of shares; the rupee issue size is computed from this final issue price.

Related terms

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