IPO price band in India

Mon, 11 May 2026 00:00:00 +0000

The IPO price band is the range of prices within which investors may submit their bids in a book-built Initial Public Offering (IPO) in India. The price band has a lower bound (the floor price) and an upper bound (the cap price). Bids submitted below the floor or above the cap are rejected by the exchange’s Issue Module. The SEBI (ICDR) Regulations, 2018 limit the spread of the price band to a maximum of 20% above the floor (i.e., the cap cannot exceed 1.2× the floor). Most issuers set much narrower bands in practice, typically 5% or 10%, to concentrate investor demand near the upper end and simplify price discovery. The price band is disclosed in the Red Herring Prospectus (RHP) and in all issue advertisements; it is the primary parameter from which the lot size and the blocked amount under ASBA or UPI ASBA are derived.

IPO Price Band on WebNotes

IPO price band in India