Bank of baroda

The process of Book Building under SEBI Guidelines though not new, investors are advised to make their own
judgment about investment through this process prior to making a Bid or Application in the Issue.
Illustration of Book Building and Price Discovery Process
 (Investors should note that this example is solely for
illustrative purposes and is not specific to the Issue)
Bidders can bid at any price within the price band. For instance, assume a price band of Rs. 20 to Rs. 24 per share,
issue size of 3,000 equity shares and receipt of five bids from bidders, details of which are shown in the table below. A
graphical representation of the consolidated demand and price would be made available at the bidding centres during
the bidding period. The illustrative book as shown below shows the demand for the shares of the company at various
prices and is collated from bids from various investors.
Bid Quantity
Bid Price (Rs.)
Cumulative Quantity
Subscription
500
24
500
16.67%
1,000
23
1,500
50.00%
1,500
22
3,000
100.00%
2,000
21
5,000
166.67%
2,500
20
7,500
250.00%
The price discovery is a function of demand at various prices. The highest price at which the issuer is able to issue the
desired number of shares is the price at which the book cuts off i.e. Rs. 22 in the above example. The Issuer, in
consultation with the book running lead managers, will finalise the issue price at or below such cut off price, i.e. at or
below Rs. 22. All bids at or above this issue price and cut-off bids are valid bids and are considered for allocation in the
respective categories.
Steps to be taken for bidding:
Check eligibility for bidding, see the section titled “Issue Procedure-Who Can Bid?” on page 351 of this Red
Herring Prospectus;
Ensure that the Bidder has a demat account; and
Ensure that the Bid cum Application Form is duly completed as per instructions given in this Red Herring Prospectus
and in the Bid cum Application Form.