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What is the difference between Book Building Issue and Fixed Price Issue?

April 26, 2017book building fixed ISSUE price

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What is the difference between Book Building Issue and Fixed Price Issue?

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Initial Public Offering can be made through the fixed price method, book building method or a combination of both. Fixed Price process Price at which the securities are offered/allotted is known in advance to the investor. Demand for the securities offered is known only after the closure of the issue. Payment if made at the time of subscription wherein refund is given after allocation. Book building process Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is known. Demand for the securities offered can be known everyday as the book is built.