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Well, coming back to public issues and small investors, it is worth mentioning one example from ICICI bank. Towards the end of 2005 ICICI bank conducted its FPO to raise close to Rs 5,000 crores. It was announced that retail investors would be allotted shares at a rate fiver percent below the cutoff price determined by book building process. Every other section of investors were allotted shares at Rs 525 each. The same shares were offered to retail investors at Rs 498.75. A company can propose to issue shares at different prices for different categories of investors. Such a facility is known as ‘differential pricing’. That would happen only if the company feels it would be difficult to get rid of the supply to a particular section of investors. Otherwise,
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Chellamuthu Kuppusamy (The Science of Stock Market Investment - Practical Guide to Intelligent Investors)