A price band is a value-setting method in which a seller indicates an upper and lower cost limit, between which buyers are able to place bids. 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 price band is Rs. 100- 120. Here, the lower end of the range that is Rs. 100 is called the floor price. However, on the other side, the upper limit of the band that is Rs. 120 is called the cap price.

Answer given by Shubhamm Sir at 23-Mar-2023 07:11 PM