A company is planning for Initial Public Offer of its equity shares. It has decided differential pricing for retail individual investors (RII) and QIBs and Non-Institutional Investors (NIIs). The proposed price for RII i

As per the Regulation 30 of SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, the issuer may offer its specified securities at different prices, subject to the following: (a) retail individual investors or retail individual shareholders or employees entitled for reservation made under the regulation 33 of SEBI (ICDR) Regulations 2018, may be offered specified securities at a price not lower than by more than ten percent of the price at which net offer is made to other categories of applicants, excluding anchor investors: (b) in case of a book built issue, the price of the specified securities offered to the anchor investors shall not be lower than the price offered to other applicants The difference between the proposed price for Retail Individual Investor (RII) and Qualified Institutional Buyer (QIB) and Non-Institutional Investors (NIIs) is more than 10%, as envisages in the regulation, hence the company cannot issue securities to RII at ₹250 per share. If the equity shares is proposing to anchor investors at ₹280, it is not as per the regulation 30 of SEBI (ICDR) Regulations, 2018 as the price is lower than the other applicants i,e., QIB and FII. (assuming QIB and FII are other applicants)