What is the cut-off price in IPO?

The cut-off price is the final price decided for allocation of shares.

In book-building IPO, a price band is decided say Rs 50 – Rs 60. The cut-off price is the upper or maximum price of the price band i.e., Rs 60. Thus, it is also the maximum possible price, at which, the IPO issuer company can allot shares to investors.

Retail investors (Bidding amount upto Rs 2 lakh) can apply IPOs at the cut-off price.