InvestorQ : How many days before the opening of issue, price band should be published by the issuer?
Dilmini Mercia made post

How many days before the opening of issue, price band should be published by the issuer?

Answer
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Dawn Cherian answered.
2 years ago


Issuers are required to disclose information pertaining to the price band at least 5 working days prior to opening of an issue. How does that aid in decision making by the investors? By providing the price band information sufficient number of days before issue opening, the market gets adequate time to absorb the same and factor that in the decision making process. There is also the issue of price band discount for retail investors. For example, if you came across an offer from the Issuer at initial public offer stating that it is issuing shares/ convertible securities to retail individual investors and employees of the company at a price 10% lesser than the price offered to others, what does that mean? That is a discount to retail that is permitted by SEBI and it is perfectly legitimate. As a retail investor you can apply if the company has offered so and make the best of the discount issue.