What is a cut-off price in an IPO? How to pre-apply for public issue: All you need to know

Three IPOs are set to launch this week, including Hyundai Motor India's mega initial public offering and two SME IPOs from Lakshya Powertech and Freshara Agro Exports. With a busy week ahead, there is a lot of buzz around topics related to initial share sales, such as the cut-off price and pre-application. Let's take a look at these terms.

What is a cut-off price in an IPO?

The cut-off is a price at which an interested investor is ready to subscribe to equity shares. It is the highest price at which an investor wants to buy shares.

If an investor selects the 'Cut-off' option, it indicates that he/she is willing to accept whatever the cut-off price the company sets.

What is pre-apply in an IPO?

How to pre-apply for Hyundai Motor India IPO on Upstox website

• Visit https://upstox.com/ipo-initial-public-offering
• Log in using your credentials on Upstox
• In the ongoing IPO section, select the 'Hyundai Motor India IPO'
• Click on 'Pre Apply'
• Fill in the required details and click on 'Continue'
• Accept the UPI mandate to block the IPO amount and place your bid.

Watch: How to pre-apply for Hyundai Motor India IPO on Upstox App