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What is the cut-off price in IPO?

Bidding at the cut-off price in the book building issue is the safest way to get an allotment of shares since the cut-off price is the price at which shares get issued to the investors. An investor is allowed to bid at minimum, maximum or within the price range of the issue. In case you select cut-off, you are eligible for allotment at any determined issue price.

For retail investors, the maximum price within the price band of an IPO is the cut-off price.

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