Formulation of price bands for the first day of trading pursuant to Initial Public Offering (IPO), re-listing etc. in normal trading session

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..... ic Offering (IPO), re-listing etc. in normal trading session 1. SEBI vide circular no. CIR/MRD/DP/02/2012 dated January 20, 2012 prescribed parameters regarding price discovery through Call Auction and applicable price band for the first day of trading pursuant to IPO or recommencement of trading for re-listed scrips in normal trading session. 2. As aforesaid Call Auction sessions are conducted .....

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..... ion of equilibrium price. b. If difference in the equilibrium price between exchanges in percentage terms (i.e. absolute difference/minimum of equilibrium prices, expressed as %) is more than the applicable price band for the scrip, a Common Equilibrium Price (CEP) would be computed by exchanges. The CEP shall be volume weighted average of equilibrium prices on individual exchanges as determined .....

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..... than the applicable price band (i.e. 20% against 5%), CEP would be calculated viz. (120*300+100*500)/800 = 107.50. Further, the lower and upper price band on both exchanges would be 5% around the aforesaid price of 107.50 and the unexecuted pending orders of the Call Auction session, lying within this price band, would be carried to normal session. 5. The provisions of this circular shall come .....

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