Thursday, September 25, 2008
 |
| Understand the basics of investing and trading online. Delve into advanced concepts and strategies that will give you an edge. |
 |
|
|
|
IPO - IPO PRICING
| IPO - IPO PRICING |
How is the issue price decided on?
A company that is planning an IPO appoints lead managers (SEBI-registered merchant bankers who are responsible for helping the company execute the IPO) to help it decide on an appropriate price at which the shares should be issued. There are two ways in which the price of an IPO can be determined – either the company, with the help of its lead managers, fixes a price or the price is arrived at through the process of book building.
|
|
|
Back |