What is auctioning of an Issue ?

Auctioning of an Issue A method of structuring of an issue, this involves auctioning an issue to the investor. An issue may be marketed with a floor premium and a maximum premium, say, Rs 10 and Rs 50. Those who offer the best premium get the allotment first, and the allotment is continued by accepting the nest best till the issue is completely subscribed. If there is an oversubscription at any level and below, the usual method of proportionate allotment is followed.

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