As per SEBI regulations, retail investors can make a price bid or choose to place their bid at cut-off price. The cut-off price will be determined by the company based on the bids received.
If you have a demat account, you can ask the broker to place a bid – at a given price or at cut-off. Alternatively, you can also apply through the exchange website, if you have registered already. You can check the interest levels at various prices at the exchange website. Indicative price, which is the volume weighted average price, along with subscription figures can give you an indication of demand.
You can place multiple bids at different prices and also change your bid during the day. Upfront cash must be available in your account for the entire bid amount. Allotment information will be reported at the end of day today and excess funds due to non-allotment or partial allotment will be refunded to the trading members on the same day. Shares allocated will appear in your account by the next trading day (Monday).
According to Sebi, retail bids at cut-off price would be allocated on proportionate basis in case of over subscription. When applying, ensure you have checked the retail category – RI in case of BSE and RS in case of NSE. If this is not selected, you will miss out on the 5 per cent discount.