InvestorQ : What is the meaning of floor price in case of book building?
diksha shah made post

What is the meaning of floor price in case of book building?

Answer
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2 years ago


Floor price is the minimum price at which bids can be made. Any bid below the floor price is not accepted and will result in outright rejection of the application. However, even if you apply above the floor price and your bid is below the final discovered price then your allotment will not be done. Hence it is best to apply at the cut off price so that you affirm your acceptance to whatever price is discovered and do not have to go through the hassles of price statement.