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What is the difference between Floor Price and Cut-Off Price for a Book Building Issue?

April 26, 2017book building Cut-Off floor ISSUE price

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What is the difference between Floor Price and Cut-Off Price for a Book Building Issue?

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Floor Price is the minimum price (lower level) at which bids can be made for an IPO. Cut-off price means the investor is ready to pay whatever price is decided by the company at the end of the book building process. Retail investor has to pay the highest price while placing the bid at Cut-Off price.