What is the bookbuilding Method in IPOs? Please explain in layman terms.
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.
Can I use my saving account to apply for IPO by using demat account of my friend?
Mohan - Why not you apply IPO with your friends name and later on transfer shares in your demat account.