The document describes different types of book building for initial public offerings (IPOs) in India. It explains that an IPO can be 75% book building and 25% fixed price, with 75% of shares allocated through bidding and 25% at a fixed price. Alternatively, an IPO can be 100% book building, with the entire issue allocated through the bidding process. It also outlines the share reservations for qualified institutional buyers, non-institutional investors, and retail investors under each book building structure.
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Types of Book Building
The document describes different types of book building for initial public offerings (IPOs) in India. It explains that an IPO can be 75% book building and 25% fixed price, with 75% of shares allocated through bidding and 25% at a fixed price. Alternatively, an IPO can be 100% book building, with the entire issue allocated through the bidding process. It also outlines the share reservations for qualified institutional buyers, non-institutional investors, and retail investors under each book building structure.
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Types of book building
75% Book Building, 25% Fixed Price Offer
75% of the issue is offered to institutional investors who participate in bidding process 25% of the issue is offered to the individual investors based on price determined by book building
100% Book Building Offer
Whole issue is offered through book building route
Link to: About IPOs
https://www1.nseindia.com/products/content/equities/ipos/about_ipos. htm Reservations in Issues
Fixed Price Issues
50 % of the shares offered are reserved for applications below Rs. 2 lakhs and the balance for higher amount applications
Book Building Issues
100% Book Building Offer 50 % of shares offered are reserved for QIBs, 15 % for Non institutional buyers and 35% for Retail Investors Basis of allotment in the ratio of 15:35:50 Contd…
Book Building Issues
75% Book Building, 25% Fixed Price Offer 50 % of shares offered are reserved for QIBs, 25 % for Non Retail and 25% for Retail Investors Basis of allotment in the ratio of 25:25:50