Allotment is the amount of stock in an initial public offering (IPO) granted by the underwriter to an investor. For most IPOs, the allocation is significantly less than the indication of interest.
Basis of Allotment
The basis of allotment in case of QIB category is on a discretionary basis while in case of Retail and Non-QIB(HNI) category the allotment is on a proportionate basis
Cap Price
Cap Price is the upper end of the price band.
Cut off Price
In case of public issues the actual discovered price/ issue price can be anything between a given price band. The discovered issue price is called the cut off price.
Draft Prospectus
Draft Prospectus means the offer document in the draft stage, which is filed with SEBI for its observations. The draft offer documents are filed with SEBI at least 21 days prior to filing the offer document with ROC and Exchange.
Floor Price
Floor Price is the lower end of the price band.
Oversubscription
When a deal has more orders than there are shares available it is said to be oversubscribed. Many underwriters like to see a book several times oversubscribed because they know that investors inflate the size of their indications of interest.
Price Band
Price band indicates the different price levels within a given range in which the investor can enter his bid.
Prospectus
Prospectus is a summary of the data on a primary market issue. This is the offering document printed by the company containing a description of the business, discussion of strategy, presentation of historical financial statements, explanation of recent financial results, management and their backgrounds and ownership. It is the company's principal marketing document. The prospectus enables investors to evaluate the security and make an investment decision.
You can obtain information included in the prospectus of an issue from the "Draft Prospectus" section under "IPO".
