International Journal of Applied Research
Vol. 2, Issue 3, Part B (2016)
Book building process & its perspective
Book Building is the process of determining the price at which an Initial Public Offering will be offered. SEBI guidelines, 1995 defined book-building as “a process undertaken by which a demand for the securities proposed to be issued by a body of corporate is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document”. Every business organization needs funds for its business activities. It can raise funds either externally or through internal sources. When the companies want to go for the external sources, they use various means for the same. Two of the most popular means to raise money are Initial Public Offer (IPO) and Follow on Public Offer (FPO). During the IPO or FPO, the company offers its shares to the public either at fixed price or offers a price range, so that the investors can decide on the right price. The method of offering shares by providing a price range is called book building method. This method provides an opportunity to the market to discover price for the securities which are on offer. The paper aim to examine detail Analysis of Book Building Process.
How to cite this article:
Varsha Kshirsagar. Book building process & its perspective. International Journal of Applied Research. 2016; 2(3): 68-71.