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How the IPO price is decided considering the face value of
an equity share?
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Answer Posted / sirisha dirisam
IPO can be issued at a fixed price as decided by the issuer
and the merchant banker or by a process known as ‘Book
Building’ in which a ‘floor price’ or ‘price band’ is fixed
and the price of the share is decided by the market forces
(demand and supply mechanism).
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