Fixed Price issue
A Fixed Price Issue is an IPO method where the company sets one specific price for its shares in advance, with no price range.
In a Fixed Price Issue, the issuer decides a single price at which all investors must apply, unlike book building where a price band is offered and the price is discovered through demand.
Key points:
No bidding process involved
Investors know the exact price before applying
Commonly used by smaller companies or SME IPOs
Demand for shares is disclosed only after the issue closes
Example:
If a company announces a Fixed Price Issue at ₹50 per share, every investor applies at exactly ₹50, with no scope to bid higher or lower.