What is the difference between Floor Price and Cut-Off Price for a Book Building Issue ?
Company coming up with Book Building Public Issue decided a price band for the issue. The price band usually contains an upper level and a lower level. Floor Price is the minimum price (lower level) at which bids can be made for an IPO. Investors can bid for the Book Build IPO at any price in the price band decided by the company. In Book Build process retail investors have an addition option to choose "Cut-Off" price for bidding. 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. Retail investor has to pay the highest price while placing the bid at Cut-Off price. If company decides the final price lower then the highest price asked for IPO, the remaining amount is return to the retail investor.
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What is Right Issue ?
A public company that wants to raise capital can opt for a Public Issue or a Rights Issue. In a Rights Issue, existing shareholders have the right to buy a specified number of new shares of the firm at a specified price within a specified time. ...
What is the difference between RII, NII, QIB and Anchor Investor ?
Investors can apply for shares in one of the following categories: Retail Individual Investor (RII) -Resident Indian Individuals, NRIs and HUFs who apply for less than Rs 2 lakhs in an IPO under RII category. -Not less than 35% of the Offer is ...
Can I revise or cancel my IPO application ?
Yes an investor can revise bided quantity and price of an already applied Book Building IPO anytime if the issue is still open for subscription.
What is the qualifying criteria for Right Issue ?
The rights issue is not open for the general public but only to existing shareholders of the company. A company announces a record date in case of a rights issue. To be eligible to qualify as an existing shareholder for the rights issue, one must own ...
What are the most common types of corporate actions ?
Most common types of corporate actions are listed below: Bonus Issue Bonus shares are additional shares given to the shareholders without any extra cost based on their existing shares. When bonus shares are issued, the number of shares increases but ...