When one category of investors is offered shares at a price different from the other category it is called differential pricing. The following are the different categories of investors to whom shares can be issued at differential pricing:

Retail investors

An issuer company can allot the shares to retail individual investors at a discount of maximum 10% to the price at which the shares are offered to other categories of public.

Employees

An issuer company can offer the shares to employees at a discount of maximum 10% to the floor price at which the shares are offered to other categories of public.