What is Floor Price for a Book Issue Building?

All the companies which are generating Book Building Public Issue decide the price band for the shared issued.  This price band usually has two levels namely upper level and lower level.

The floor price is the minimum price or the lower level at which the investor’s bids shall be made for an IPO. Buyers can bid for the Book Build issue IPO at any price within the price band which is decided by the issuer company.