The cut-off price is the final issue price in a book-building IPO — the price at which sufficient demand exists to fully subscribe the offering. All successful bidders (regardless of the price they bid within the price band) pay the same cut-off price.
Applying at cut-off vs a specific price
Retail investors can bid at any price within the band, or they can select "cut-off price" — a special option that means they are willing to pay whatever the final price is set at. Choosing cut-off is almost always the right decision for retail: it ensures your bid is valid at the final price and you don't risk being excluded if you bid just below the cut-off.
Why it matters for unlisted shares
The cut-off price is the official IPO entry price that determines your return if you are allotted shares. Comparing it to the current unlisted market price tells you the IPO premium over secondary buyers and whether further upside remains.
Example: A ₹400–₹420 band saw the cut-off set at ₹420. Retail applicants who selected cut-off were included; those who bid ₹415 were not allotted.