What is fixed price and book building issue?


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ISSUE TYPE

OFFER PRICE

DEMAND

RESERVATIONS

Fixed Price Issues Price at which the securities are offered and would be allotted is made known in advance to the investors Demand for the securities offered is known only after the closure of the issue 50% of the shares offered are reserved for applications below  1 lakh and the balance for higher amount applications.
Book Building Issues A 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. Demand for the securities offered, and at various prices, is available on a real time basis on the BSE/NSE website during the bidding period. Generally, 50% of shares offered are reserved for QIBS, 35% for small investors and the balance 15% for HNI.

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