IPO Terminology
Cut-off Price
The Cut-off Price is the final price decided by the company and book runners at the end of the bidding period, based on the demand received. Retail investors who select the 'Cut-off' option in their bid agree to buy shares at whatever final price is decided within the price band.
Why it matters
Always apply at the Cut-off Price as a retail investor to maximize your chance of getting allotment in oversubscribed IPOs.
Common Questions about Cut-off Price
Why should I bid at the Cut-off Price?
If you bid at a specific price below the final cut-off, your application is automatically rejected. Bidding at cut-off ensures your bid remains valid at the final pricing.