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