(iii) Combination of Both.

Fixed Priced Method:

Fixed price issues are issues in which the issuer is allowed to price the shares as it wishes. The basis for the price is explained in the offer document through qualitative and quantitative statements. This offer document is filed with the stock exchanges and the Registrar of Companies.

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Book Building Method:

Book Building is essentially a process used by companies raising capital through Public Offerings-either Initial Public Offers (IPOs) or Follow-on Public Offers (FPOs) to aid price and demand discovery.

The issuer sets a base price and a band within which the investor is allowed to bid for shares. It is a mechanism where, during the period for which the book for the offer is open, the bids are collected from investors at various prices, which are within the price band specified by the issuer. The process is directed towards both the institutional as well as the retail investors. The issue price is determined after the bid closure based on the demand generated in the process. In case the issuer chooses to issue securities through the book building route then as per SEBI guidelines, an issuer company can issue securities in the following manner: (i) 100% of the net offer to the public through book building route. (ii) 75% of the net offer to the public through the book building process and 25% through the fixed price portion. (iii) Under the 90% scheme, this percentage would be 90% and 10% respectively.