Glossary
Book building
M0.02Also called book built issue, price discovery.
The process by which an offer price is discovered from investor demand rather than fixed in advance. Bids are collected across a price band and the final price is set where the book fills.
An issue with a band of ₹900 to ₹950 will price at ₹950 if demand at that level covers the offer.
Subscription figures published each day, split by investor category, are the visible signal of demand. Institutional subscription is generally the more informative category, since retail interest tends to follow price momentum and media coverage.
Heavy oversubscription tells you about demand for the shares, not about the value of the business.