iii. Circulation of Information Memorandum.

iv. Filing of Red herring Prospectus at least three days before the opening of the offer. v. The Issuer specifies the number of securities to be issued and the price band for the bids.

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vi. The investor had to bid for a quantity of shares he wished to subscribe to within the band specified in the offer document. The upper price of the band can be a maximum of 1.2 times the floor price.

vii. The Issuer also appoints syndicate members with whom orders are to be placed by the investors. viii. The syndicate members put the orders into an ‘electronic book’. This process is called ‘bidding’ and is similar to open auction. ix. The order book, in which the investors state the quantity of the stock they are willing to buy, at a price within the band, is built. Thus the term ‘book-building.

’ x. An issue through the book-building route remains open for a period of 3 to 7 days and can be extended by another three days if the issuer decides to revise the floor price and the band. xi. Bids have to be entered within the specified price band. xii. Bids can be revised by the bidders before the book closes. xiii.

On the close of the book building period, the book runners evaluate the bids on the basis of the demand at various price levels. xiv. The book runners and the Issuer decide the final price at which the securities shall be issued. xv. Generally, the number of shares are fixed; the issue size gets frozen based on the final price per share.

xvi. Final Prospectus specifying the price and size of the offer is issued. xvii.

Allocation of securities is made to the successful bidders. The rest get refund orders.