Quote Originally Posted by Vijay_Kumar View Post
What is the bookbuilding Method in IPOs? Please explain in layman terms.
As per Book building method, the IPO issuing company doesn't fix the price in advance, rather gives a price band to the investors within which they are entitled to bid. The investors, in turn, bid for the same by stating the quantity as well as the price of the IPO shares at which they are interested to purchase. IPO's final price is then determined on the basis of all the bid prices.