What if we do not specify/tick 'cut off price' in IPO enrollment?


In IPO enrollment form, what if we do not tick cut off price checkbox?


In an IPO application, you can either enter the bid price or you can choose to check the cut off price option. Cut off price will be decided based on all the bids received and if allotted you will receive the shares at that price.

I thought cut of price is the maximum of price range specified. Correct me if I am wrong?

What if we do not tick the ‘Cut Price’ checkbox? I may have to pay more than maximum bid price specified?


You can never buy more than cut price.

By ticking cut price, gives you more priority than other who choose non cut price which is generally less than that cut off price.

It’s a common misconception to consider the upper end of the price band as the cut off price. The lower end of the price band is called the floor price and the higher end of the price band is called the cap price.

Cut off price is discovered in this range based on the demand after tallying all the bids.

When you check the “Cut off” price option you are basically saying that you are ready to pay whatever price in the price band to get the shares.


In an oversubscribed issue cap price is the cut off price

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Thanks Bhuvanesh, and to all for your prompt response and clarification.

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zerodha mentions the cut off price in the OFS , on the below bulletin link .

Offer for sale (OFS) - December 2020 (zerodha.com)

but , how do i counter check / verify it ? is there any other source whereby i find the cut-off price ?

You can refer to the Letter of Offer filed by the company with SEBI and the Exchanges, this will include all the details.

Where do I find it ? On the nse website?

bro… just google company name and letter of offer, you will find it…