Glossary
Price band: meaning, example and why it matters
The range within which bids can be placed in a book-built IPO. The final issue price is set within it.
Worked example
An IPO with a price band of ₹95 to ₹100 lets you bid anywhere in that range. If the final issue price is set at ₹98, applicants who bid ₹100 pay ₹98.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
The band limits where the issue price can end up, so the cost of an application is known to within a range.
Related terms
See it in practice
Frequently asked questions
Can the final price be outside the price band?
No. In a book-built IPO the final issue price is fixed within the announced band.
Is this page investment advice?
No. Price band is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.