The initial public offering can be done through either the fixed price or book building method.
There is a difference between shares offered by book building and shares offered by a normal public issue-
Fixed price process
Book building process
|Pricing||The price at which securities are offered/allotted will be known to the investor in advance.||The price at which securities are offered/allotted to investors is not known in advance. It is only possible to estimate the price range.|
|Demand||Only after the issue is closed, can the demand for the securities be known.||As the book is being built, the demand for securities can be determined every day.|
|Payment||If payment is made at the time subscription, refunds will be given after allocation.||Only after allotment can payment be made|