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What are fixed price offers?

April 26, 2017fixed offers price

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What are fixed price offers?

1 Answer

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An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The issuer company can mention a price band of 20 per cent (cap in the price band should not be more than 20 per cent of the floor price) in the draft offer documents filed with Sebi and actual price can be determined at a later date before filing of the final offer document with Sebi/RoCs.