Investment BankingIntermediate
Book Building
The process of discovering an issue price by collecting investor bids within a price band.
Detailed explanation
Bankers gather bids from institutional, high-net-worth and retail investors, and the final price is set based on demand.
Why it matters
It is how almost all Indian IPOs are priced.
Key points
- Price band set before opening.
- Demand shown as subscription times.
- Anchor investors bid a day earlier.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.