Book Building

Tax Glossary Definition

Book Building

Book Building – Book building is a price discovery mechanism used during public offerings such as IPOs or FPOs to determine the fair issue price of securities. Under this process, investors submit bids within a predetermined price range, and the final price is decided based on the level of demand reflected through these bids.

Example: If an IPO has a price band of ₹100–₹120 and most investors place bids around ₹115, the company may fix the issue price at ₹115.

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