Differential pricing

Pricing of an issue where one category is offered shares at a price different from the other category is called differential pricing. In Disclosure and Investor Protection (DIP) Guidelines, differential pricing is allowed only if the securities to applicants in the firm allotment category are at a price higher than the price at which the net offer to the public is made . The net offer to the public means the offer made to the Indian public and does not include firm allotments or reservations or promoters’ contributions.