{"id":27659,"date":"2026-04-16T09:06:48","date_gmt":"2026-04-16T09:06:48","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=27659"},"modified":"2026-04-16T09:07:02","modified_gmt":"2026-04-16T09:07:02","slug":"what-is-the-price-band-and-cut-off-price-in-an-ipo","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-the-price-band-and-cut-off-price-in-an-ipo\/","title":{"rendered":"What is the Price Band and Cut-Off Price in an IPO?"},"content":{"rendered":"\n<p>When you sit down to apply for an IPO, two terms will come up immediately: price band and cut-off price. Getting these right is essential to applying correctly and maximising your allotment chances.<\/p>\n\n\n\n<p><strong>What is a Price Band?<\/strong><\/p>\n\n\n\n<p>A price band is the range within which you can place your bid. The company and its merchant bankers set this before the subscription opens. The lower end is the floor price and the upper end is the cap price. SEBI rules state that the cap price cannot exceed 120% of the floor price.<\/p>\n\n\n\n<p>For example, if an IPO has a price band of \u20b9440 to \u20b9460, you can bid anywhere between those two numbers.<\/p>\n\n\n\n<p><strong>What is the Cut-Off Price?<\/strong><\/p>\n\n\n\n<p>Choosing a cut-off price means you&#8217;re willing to pay whatever the final issue price turns out to be, within the price band. Once the subscription closes, the company sets the final price based on demand, typically the cap price for well-subscribed IPOs.<\/p>\n\n\n\n<p>As a retail investor, you should always bid at a cut-off price. If you bid at a specific price and the final issue price ends up higher, your application gets rejected. Bidding at cut-off ensures you&#8217;re never eliminated on price grounds.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2971],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27659"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=27659"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27659\/revisions"}],"predecessor-version":[{"id":27661,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/27659\/revisions\/27661"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=27659"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=27659"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=27659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}