Book Building - Glossary

Bid
A bid is the demand for a security that can be entered by the syndicate/sub-syndicate members in the system. The two main components of a bid are the price and the quantity.

Bidder

The person who has placed a bid in the Book Building process.

Book Running Lead Manager

A Lead Merchant Banker who has been appointed by the Issuer Company as the Book Runner Lead Manager. The name of the Book Runner Lead Manager is mentioned in the offer document of the Issuer Company.

Floor Price

The minimum offer price below which bids cannot be entered. The Issuer Company in consultation with the Book Running Lead Manager fixes the floor price.

Merchant Banker

An entity registered under the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1999.

Syndicate Members

Syndicate Members are the intermediaries registered with the Board and permitted to carry on activity as underwriters. The Book Running Lead Managers to the issue appoints the Syndicate Members.

Order Book

It is an 'electronic book' that shows the demand for the shares of the company at various prices.

Index

 




 

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