IPO AND BOOK BUILDING PROCESS

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IPO AND BOOK BUILDING PROCESS:

An initial public offering (IPO) is the first time that the stock of a private company is
offered to the public. (HDFC Standard life Insurance) (Biggest IPO – COAL INDIA –15200cr)

Book building is the process by which an underwriter attempts to determine at what price
to offer an initial public offering (IPO) based on demand from institutional investors. An
underwriter builds a book by accepting orders from fund managers, indicating the
number of shares they desire and the price they are willing to pay.