Dear Anonymouse!!! As fas as I understand, All price bids below issue price gets rejected and it reduces the oversubsciption figures. This in turn should improve the allotment.
SJ, Sreedhar, Gem, Ravi can throw more light on this...
Have a question, request all knowledgeable persons to clarify. As per nse website, Eros retail over subscription is 11.95 times but if we consider bids at cut-off it comes to 10.61 times. Just wanted to know, that as the price is likely to be set at 175/- per share, what will happen to price bids? Will they get rejected? And will this improve the allotment? Please clarify. Thanks.
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September 23, 2010 1:47:11 PM
Top Contributor (600+ Posts, 100+ Likes)
@anon, you can check faqs if you are new in ipo world.
a premium is an amount added to ipo offer price that several rules of market decide like demand and supply, future earning etc.
Like eros is offered at 175 on high side, if it has potential to gow at 10%, it's premium will be 17.5 and share price will be 192.5.