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IPO guides · Reviewed 23 Oct 2026
The price band is the range within which you can bid. The final issue price is fixed inside it after the book is built. A cut-off bid means you accept whatever price is fixed, and retail investors are blocked at the upper end.
A lower and upper price. Bids must fall inside the band.
Fixed within the band once demand is known, usually announced after the issue closes.
Retail option to bid at the final price, whatever it turns out to be.
Calculated at the upper price band, so a lower final price releases the difference.
Most mainboard IPOs use book building. The company announces a band, investors bid inside it, and the final price is set where demand supports it. Fixed-price issues have a single price instead of a band.
A cut-off bid remains valid whatever the final price is within the band. A bid at a lower price is rejected if the final price is higher. Cut-off therefore avoids losing the application because the price landed above your bid.
The amount blocked is based on the upper price band. If the final price is lower, the difference is released when allotment is finalised.
General information, not investment advice. Rules set by SEBI, RBI and the exchanges can change, so confirm current limits with your broker or the offer document.