What is the difference between Cut off and bidding price in IPO?

P

psychotron

New Member
#11
#11
In the offer document it says that Non institutional individuals and QIB 's cannot bid at the cut-off price. So does that mean that they cannot bid at Rs 36 as in the case of NHPC, but can bid at any price between Rs 30 and Rs 35?

And why are they not allowed to bid at the cut-off price, i.e Rs 36 the cap price in this case?
 
G

goodbrother

Active Member
#12
#12
psychotron said:
In the offer document it says that Non institutional individuals and QIB 's cannot bid at the cut-off price. So does that mean that they cannot bid at Rs 36 as in the case of NHPC, but can bid at any price between Rs 30 and Rs 35?

And why are they not allowed to bid at the cut-off price, i.e Rs 36 the cap price in this case?
Click to expand...

Fascility to apply at cut off , 36 in case of NHPC , is extended to Retail investors ONLY . QIB & NIB are not allowed to bid at cut off price but have to make price bids any amount within the price band which is 30 to 36.

cut off appl by retail invester is with an understanding that what ever price declared they will be allotted with that price and balance refunded.

RETAIL INVESTER SHOULD APPLY AT CUT OFF , AVAILING THIS FASCILITY
 
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