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

Upstox
By Upstox News Desk

2 min read | Updated on October 15, 2024, 09:12 IST

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SUMMARY

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

IPO-cut-off-price-pre-apply-ipo.jpg

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.

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.

For example, an IPO is priced between ₹170 and ₹180, and the investor bids at ₹176 apiece for 10 ten shares. If the IPO price is determined at ₹175, the investor will get shares. However, if it is ₹177, one will fail to get 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.

Hyundai Motor India IPO: 10 points you need to know ahead of ₹27,870 crore public offer opening

What is pre-apply in an IPO?

Pre-applying for an IPO allows users to apply for initial share sales in advance before they go live for subscription. After the IPO goes live, users will receive a UPI mandate. Investors need to accept this to block the IPO amount and successfully place the bid.

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

To learn more about IPO listings, schedules, and upcoming IPOs, visit our page.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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