In Book building issue, the issuer company is required to indicate either the price band or a floor price in the red herring prospectus. The actual price is discovered through book building based on demand and supply. Issue price can be any price in the price band or any price above the floor price. The finally decided price by the Issuer, i.e., issue price is called "Cut Off Price". The retail individual investors have been given an option to apply for IPO at the cut off price. In short, it is the final issue price decided by the issuer.
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