Book building is a process of price revelation. It is a system where, during the time frame for which the IPO is open, bids are gathered from financial backers at different prices, which are above or equivalent to the floor price. The offer price is resolved after the Bid shutting date.
The issuer of the initial public offer (IPO) reveals a price band or floor price at any rate two working days prior to the kickoff of the IPO.
The candidates bid at the offers citing the cost and the amount that they might want to bid at. After the bidding process is finished, the cut-off price is shown up at dependent on the interest for protections.
The premise of portion is then concluded and apportioning or discount is embraced. The last plan with every one of the subtleties including the last issue price and the issue size is documented with ROC, hence finishing the issue process.
