What is the difference between book building and IPO?

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

An IPO is the initial issuance of shares by a private company to the general public for the first time, while book-building is one of the methods used to issue IPOs.
Book building is a pricing mechanism in which the offer price is decided based on the demand for the issue after the issue closure. In book-building, the company announces a price range (e.g., Rs 75 to Rs 80) within which investors must bid.

Topic: IPO Pricing Feedback

Comments

Add a public comment...

Find more questions on this topic

What is IPO pricing?
Who decides the IPO price?
How is the IPO price decided?
Does the IPO price change?
What is the book-building method?
What is a fixed price issue IPO?
What is the book-building process in IPO?
How is the IPO price band decided?
Is the IPO price and listing price the same?
Can IPO price change?
Why does underpricing always occur for an IPO?
What is IPO book building?

Ask Your Question