Quote Originally Posted by Sandeep View Post
I have one more query - What is bookbuilding method in IPO? How shares are alloted under this method?
Book building is the process of price discovery. During the fixed period of time for which the subscription is open, the book runner collects bids from investors at various prices, between the floor price and the cap price. Bids can be revised by the bidder before the book closes. The process aims at tapping both wholesale and retail investors. The final issue price is not determined until the end of the process when the book has closed. After the close of the book building period, the book runner evaluates the collected bids on the basis of certain evaluation criteria and sets the final issue price.

Source - Wikipedia.org