Book Building is a process undertaken to stimulate demand and to assess the price for determination of the quantum or value of specified securities, in accordance with the applicable regulations during public issues. This method provides an opportunity to the market to discover the price for securities. The process is named so because it refers to collection of bids from investors, which is based on a price range. The issue price is fixed after the closing date of the bid.
To facilitate the same, MSE offer its Book Building platform for bidding in Public Issues. The said facility is provided to Self-Certified Syndicate Bank (SCSB), Syndicate Member (SM) and Trading Members (TM) of the Exchange to participate in IPO for bidding through the BBS application provided by the Exchange. By default, Exchange provides two applications: MSE BBS Member Admin (BBS-MAT) and MSE BBS TWS (BBS-TWS).
SEBI vide it circular CIR/CFD/14/2012 dated October 04, 2012 has decided to introduce an additional mechanism for investors to submit application forms in public issues using the stock broker network of Stock Exchanges, who may not be syndicate members in an issue. The same has been done to further simplify the process of issuing IPO, lowering the cost to the issuers raising capital and reaching out to more retail investors in small town. This will enable acceptance of application forms in more than 1000 locations. To find out details on Broker Centers, please click ( Members / Authorized Persons )