For an initial public offering, the price bands indicate the upper and lower limits of the share price. The lowest price at which an investor can place a bid is known as the Floor Price. On the other hand, the highest price at which an investor can place a bid is known as the Cap Price of the IPO. For example, if a company launches an IPO with a price range of 250-300, then Floor Price = Rs.250 Cap Price = Rs.300

Answer given by Shubhamm Sir at 15-Feb-2024 06:07 PM