Cuttoff Price
Cut-off Price is the final price at which shares are allotted in an offer.
In an Offer for Sale (OFS), the cut-off price is the final price decided after considering all bids. It is mainly relevant for retail investors.
Retail investors can choose the cut-off option, which means they agree to buy shares at the final decided price without specifying a fixed bid price.
This increases their chances of getting shares since they accept the final price.
Example:
If the final cut-off price is ₹100, investors who selected the cut-off option will get shares at ₹100, even if they did not specify a price earlier.