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

#1
What is the difference between Cut off and bid price in IPO? In NSE demand graph, people applying at cut off price is less. Most of them bid a price, why? One more doubt, if one bids for Rs.100/= and later the company fixes the share price at Rs.96/=, at what rate he will get the allotment?
 
#2
ONLY Retail investors are allowed to bid at cut offprice , which is higher band price . say for price band of 90 to 100 , cut off is 100/ . cut off application has an understanding that what ever price is finalised , shall be applicable and balance will be refunded.

even if you apply with bid price of 100/ and price decided 96 , you will be allotted at 96 and balance refunded .

if you apply at lower bid of say 95 and price declared 96 your appl will be rejected.

RETAIL INVESTOR SHOULD AVAIL THIS FASCILITY AND APPLY ONLY AT CUT OFF PRICE
 

sanyad74

Active Member
#3
I think we can not chage the bid price even..

For example, the price is 95-100. When we enter the no of shares then system chooses the highest price by default i.e 100. You can not edit the price.

I am not sure we can change it to 95 or 96?

I tried but I could not do for Adani power.
 
#4
I think we can not chage the bid price even..

For example, the price is 95-100. When we enter the no of shares then system chooses the highest price by default i.e 100. You can not edit the price.

I am not sure we can change it to 95 or 96?

I tried but I could not do for Adani power.

I think you were applying online and selected Retail and cutoff boxes so it took 100 . if you will not select cutoff box then it will work out amount as per your bid

ONLY RETAIL INVESTORS CAN TICK CUTOFF OPTION
 

sanyad74

Active Member
#5
I think you were applying online and selected Retail and cutoff boxes so it took 100 . if you will not select cutoff box then it will work out amount as per your bid

ONLY RETAIL INVESTORS CAN TICK CUTOFF OPTION
Oh I did not notice that . so what will happpn to my allotment in this case?
Application will be rejected or get allotment?
 
#6
Oh I did not notice that . so what will happpn to my allotment in this case?
Application will be rejected or get allotment?
your appliction is made at cut off and since price is also declared 100 , your decision for cut off is perfect . you r appl is in order . I have just posted allotment system in Adani , please see and calculate your allotment
 

sanyad74

Active Member
#7
your appliction is made at cut off and since price is also declared 100 , your decision for cut off is perfect . you r appl is in order . I have just posted allotment system in Adani , please see and calculate your allotment
Thanks. If the IPO price decides at 96 then my way is still perfect and I will get at 96 /share and get back my remaining amount?

One confusion.. then what is the procedure to bid less than 100 if lets say I want to do so?

Another doubt. Now a days what is the procedure to get the remaining amount except allotted shares? In another word, does company send cheque to the give address in case no allotment? I heard now a days amount will be blocked till the allotment according to SEBI rules for IPO?

But I experienced the same way (full payment) of payment instead of any blocking money till allotment?
 
#8
Thanks. If the IPO price decides at 96 then my way is still perfect and I will get at 96 /share and get back my remaining amount?

One confusion.. then what is the procedure to bid less than 100 if lets say I want to do so?

Another doubt. Now a days what is the procedure to get the remaining amount except allotted shares? In another word, does company send cheque to the give address in case no allotment? I heard now a days amount will be blocked till the allotment according to SEBI rules for IPO?

But I experienced the same way (full payment) of payment instead of any blocking money till allotment?
New rule appl are called ASBA , banker block amount and release balance on allotment .but this fascility is available in select branches only at different select cities , you may contact your banker for same . APPLICATION FORM are alos seperate for ASBA terms.

other Refund mode/system are same as earlier , only more cities being covered in ECS/RTGS refund

you Being a Retail investor I will advice to always apply at CUT OFF
 

sanyad74

Active Member
#9
New rule appl are called ASBA , banker block amount and release balance on allotment .you may contact your banker for same .

other Refund mode/system are same as earlier , only more cities being covered in ECS/RTGS refund

you Being a Retail investor I will advice to always apply at CUT OFF
You mean we can not go for ASBA through broker online trading platform? if we approach bank then we need to do so much formalities i guess.

cut off you mean at the highest price band while applying?
 
#10
You mean we can not go for ASBA through broker online trading platform? if we approach bank then we need to do so much formalities i guess.

cut off you mean at the highest price band while applying?
1.you can not go for ASBA through broker
2.some formalities may be required by bank as it is financial guarantee type matter
3. cut off is highest price band , 36 in case of NHPC