What does it mean:- Some companies gives discount to there offer price to the retail investors. But retail investor need to pay full mentioning "cut off" in the application form. For example A company giving the share in the IPO on 90-100 rupees and offering a discount of 5% to the retail investor. The retail investor had to pay according to Rs. 100 per share with the application money and the discount come along with the refund money of the IPO. Now the investor can apply on 100-100*5%=95 rupees.
The main difference between the old procedure and the new procedure of the IPO is earlier company give discount on the refund and now retail investor need not to pay the discounted amount of the shares.
Tags-ipo at discount,ipo on discounted amount,new rule for the ipo,ipo discount,initial public offer new rule