IPO Cutoff Price

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IPO cutoff price is the price that is determined by the company at which the shares will be allotted to the investors who have subscribed to the IPO During the subscription period.

The price will be determined after the closure of the Subscription date and is based on the number of subscriptions the IPO has received. If the IPO is oversubscribed then the cutoff price will be usually at the upper end of the price band and if the IPO is undersubscribed then the price will be at the lower end of the price band.

The price will be determined such that all the shares should be allotted to the investors.

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