Who determines the Cut-off Price of an IPO?
- Answer Field
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The book-running lead managers and the issuing company determine the cut-off price of the IPO based on the market response and the books of accounts.
BAJAJ BROKING
The launch of an Initial Public Offering (IPO) can be of immense excitement and anticipation for an investor. Many investors are eager for the opportunity to invest in an emerging company for their potential to deliver substantial returns. They also get to be part of the growth story of an innovative venture.
Amidst all the excitement and anticipation for IPOs, many market participants are hard at work to make the launch a success. An indispensable participant in the IPO process is the registrar, a SEBI-registered financial institution that manages applications and allocation of IPO shares.
Here in this article, we will talk about one important registrar- SKDC Consultants Limited, its service offerings, communication details and much more.
About SKDC Consultants Limited
Established in 1979, SKDC Consultants Ltd was formerly known as Sree Krishna Data Centre. Its service offerings included software development, data processing and registry and share transfer services. The company offers registry and securities transfer services for corporate activities like buyback of shares, preference issues, right issues, bonus issues, public issues, postal ballot services and more.
SKDC Consultants Ltd is registered with the Securities and Exchange Board of India as a Category-I registrar and transfer agent. It was registered as a DP (depository participant) under the depositories- CDSL and NSDL. Recently, the company has been fully acquired by Link Intime India Private Limited.
SKDC Consultants Limited Communication Details
Address | Surya 35, Mayflower Avenue, Behind Senthil Nagar, Sowripalayam Road, Coimbatore – 641028 |
Website | https://www.skdc-consultants.com/Default.html |
info@skdc-consultants.com | |
Phone | 91-422-6549995, 2539835-36 |
Fax | 91-422-2539837 |
IPOs by SKDC Consultants Limited
Listed below are some of the IPOs serviced by SKDC Consultants Limited as a registrar and transfer agent:
Issuer Company | Exchange | Issue Open |
KKV Agro Powers Ltd IPO | NSE SME | Jun 30, 2016 |
Thangamayil Jewellery Limited IPO | BSE, NSE | Jan 27, 2010 |
Lotus Eye Care Hospital Limited IPO | BSE, NSE | Jun 12, 2008 |
Services Offered by SKDC Consultants Limited
Here are the services offered by SKDC Consultants:
SKDC Consultants Limited was among the leading registry and securities transfer service providers in the country. It offered a wide range of registry and share transfer services such as retrieval and maintenance of records, registry services in IPO, buyback of shares, right issues, etc. Apart from RTA services, it offered services like data processing, software development, etc. Now, it is a wholly-owned subsidiary of Link Intime India Pvt Ltd.
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The book-running lead managers and the issuing company determine the cut-off price of the IPO based on the market response and the books of accounts.
No, investors are not allowed to make multiple applications under the same name. Trying this can even lead to the rejection of all the applications with that PAN-linked name. However, you can try applying in the name of your family members, but you will have to make sure that each family member has a PAN card and a demat account.
The regulatory authority, SEBI has categorised investors into three main types- Retail Individual Investors (RIIs), Non-Institutional Investors (NIIs), and Qualified Institutional Bidder (QIBs). It has also fixed a percentage for each category to make sure that all the categories of investors can get an investment opportunity. Based on their study, they have set a restriction of Rs. 2 lakh.
Yes, you can apply for an IPO without having a trading account, but a demat account is mandatory for receiving the shares in an e-format. While a trading account is not mandatory because an IPO is launched in the primary market, it is needed to sell the IPO stocks in the secondary market.
As specified in SEBI guidelines, an IPO must remain open for a minimum of three business days and the maximum duration should not exceed ten business days. For a book-building issue, an IPO can remain open for 3 to 7 business days.
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