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    Religare Broking
    Glossary

    Differential Pricing

    Definition

    Offering shares to different investor categories at varying prices. This is allowed under DIP guidelines, typically with a maximum 10% discount for retail investors and employees compared to other categories, or 10% discount on the floor price for employees.

    Key Point

    This pricing difference applies only when the firm allotment price is higher than the net offer price to the public.

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