Differential pricing in public offers permits varied allotment prices with mandated disclosure and retail discount limits. Issuers may freely price equity and convertible securities for public or rights issues subject to conditions: listed and eligible unlisted companies may freely price; banks require external approval; infrastructure companies must follow SEBI disclosure norms. Differential pricing is permitted-firm allotments can be at higher prices and retail investors may receive up to a ten percent discount versus other public categories-with justification in the offer document. Price bands up to twenty percent are allowed; the board can finalise price within the band by resolution and the final offer document must contain a single price. Payments akin to discounts to firm-allottees are prohibited and share denomination rules apply.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Differential pricing in public offers permits varied allotment prices with mandated disclosure and retail discount limits.
Issuers may freely price equity and convertible securities for public or rights issues subject to conditions: listed and eligible unlisted companies may freely price; banks require external approval; infrastructure companies must follow SEBI disclosure norms. Differential pricing is permitted-firm allotments can be at higher prices and retail investors may receive up to a ten percent discount versus other public categories-with justification in the offer document. Price bands up to twenty percent are allowed; the board can finalise price within the band by resolution and the final offer document must contain a single price. Payments akin to discounts to firm-allottees are prohibited and share denomination rules apply.
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