{"id":4213,"date":"2023-03-17T05:03:49","date_gmt":"2023-03-17T05:03:49","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/cut-off-price\/"},"modified":"2023-03-17T05:03:49","modified_gmt":"2023-03-17T05:03:49","slug":"cut-off-price","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/cut-off-price\/","title":{"rendered":"Cut Off Price"},"content":{"rendered":"<p>\nAn IPO issue has a price range within which an investor can place his\/her bid. IPOs issues generally have something called as price band and cut-off price, both of which are unique.<\/p>\n<p>The cut-off price is the price that is decided by the book-running lead managers of the IPO in consultation with the company. In a book-building issue, the cut-off price is the price that is anywhere between the price band and the price above the floor price.<\/p>\n<h2>Importance of cut-off price<\/h2>\n<p>As per the SEBI regulations, only retail investors and investors under the employee reservation category are allowed to bid at the cut-off price in an IPO. QIBs and NIIs are not entitled to bid at the cut-off price. Furthermore, the eligible investors have to opt for the cut-off price at the time of application to ensure allotment of shares based on their demand and whether the IPO is oversubscribed or undersubscribed.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>An IPO issue has a price range within which an investor can place his\/her bid. IPOs issues generally have something called as price band and cut-off price, both of which are unique. The cut-off price is the price that is decided by the book-running lead managers of the IPO in consultation with the company. In [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-4213","post","type-post","status-publish","format-standard","hentry","category-ipo"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4213"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4213\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}