SEBI for IPOs at a discounted price

In another move to make the IPO process more convenient and simple for retail investors, the Securities and Exchange Board of India (Sebi) through a May 16 circular said that it has decided to allow investors to apply for shares in an IPO at discounted prices. HT reports.

In another move to make the IPO process more convenient and simple for retail investors, the Securities and Exchange Board of India (Sebi) through a May 16 circular said that it has decided to allow investors to apply for shares in an IPO at discounted prices.

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This means that if a company comes out with its public issue and offers it to retail investors a discount, then retail investors can apply for it at the discounted price as against at the cut-off price.

Several companies have in the past offered a discount of 5% on the allotment price.