What is Book Building process?
SEBI Guidelines defines Book Building as a process undertaken by which a demand for the securities proposed to be issued by a corporate body is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memorandum or offer document.
What is an IPO?
IPO means Initial Public Offering. The IPO refers to the method of selling public shares of a private company in a new issue of shares.
Who decides the Price Band of IPO?
company to decide on the price or the price band with help of the merchant bankers or syndicate members. it also called book built issue.
What is the main difference between offer of shares through book building and offer of shares through normal public issue?
Price at which securities will be allotted is not known in case of offer of shares through book building while in case of offer of shares through normal public issue, price is known in advance to investor. In case of Book Building, the demand can be known everyday as the book is built. But in case of the public issue the demand is known at the close of the issue. What is minimum number of days for which bid should remain open in book building?