Cut-off price is the price at which shares are issued to investors in an IPO. It is the minimum price that investors must bid to apply for the shares. The cut-off price is decided based on market demand, supply, company fundamentals, and other factors. In an IPO book-building issue, investors can place bids for their desired quantity in multiples of the lot size within a specified price range. If an investor chooses the cut-off option while applying for the issue, it indicates their willingness to subscribe to shares at any price discovered within the price band through the book-building process. By selecting the cut-off option, investors stand to gain allotment no matter what the final price of the IPO is, so long as it doesnt extend beyond the established price range. The cut-off price is calculated based on various factors such as market demand, supply, company fundamentals, and other factors. The cut-off price is announced by the company after a thorough consultation with the Book Running Lead Managers (BRLMs) .