What is Cut Off price?

Business & Management
#1

It is the finalized price at which the shares are allotted to the investors. It is in between the price range. It is decided by the lead manager and the issuing company.

#2

The cut-off price is the price at which shares get issued to the investors.

An IPO book building issue opens with a price range. There is a minimum price and a maximum price for the issue. An investor can place bids for the desired quantity in multiples of the lot size with a price within the applicable range.