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What are different types of issues |
Answer» There are two types of issues, one where company and Lead Merchant Banker fix a price (called fixed price) and other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determine the final price (price discovery through book building process). Nowadays, all issues are normally done through the book built route. However, the fixed price route has been kept open to allow small and medium enterprises to offer shares on the SME platform of the exchanges. | |