X Ltd. wants to issue 1000 shares through a book built offer within a Price Band of ₹130 to ₹150. Bids are received as follows: Bid Price No. of Shares Total Demand 1 ₹150 200 200 2 ₹140 300 500 3 ₹138 500 1000 4 ₹130 10

The offer is filled up at the cut-off price of ₹138. All investors who bid at ₹138 and higher are eligible for allotment in their respective categories. The company may decide the cut-off price at a price lower than the price at which the issue is subscribed for the benefit of the investors. Book built issue may also have a clause which allows allotment to retail investors at a price, which is at a discount to the cut off price, which cannot, however exceed 10% of the price at which shares are allotted to the other category of investors.