Issue Price

Issue Price It is the price at which new issues are offered to the public, at par, or at a premium, i.e., at a price above the face value. The issue price is fixed in consultation with the lead manager, which may be a bank or a financial institution. If there is a premium, the company is required to state in the prospectus for the public and in issue advertisement as well what premium the erstwhile CONTROLLER OF CAPITAL ISSUES would have permitted. The trend now is to fix a premium at as high a level as the investors can be made to accept, as if premium is a matter of company prestige.

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