Economics · Financial Markets

Evaluate the following statements regarding the Primary Market operations and the Book Building Process for Initial Public Offerings (IPOs) in India: Statement I: The 'Price Band' in a book-built IPO is the range within which investors bid, and as per SEBI regulations, the cap price must not be more than 120 percent of the floor price. Statement II: 'Anchor Investors' are Qualified Institutional Buyers (QIBs) who apply for a value of at least ₹10 crore and are allocated shares on a discretionary basis one day prior to the public issue opening. Statement III: In a public issue of equity shares, a minimum of 35 percent of the total issue size must be reserved for Retail Individual Investors (RIIs), who are defined as individuals bidding for shares worth not more than ₹5 lakh. Statement IV: The 'Green Shoe Option' is a price stabilization mechanism allowing the underwriter to over-allot shares (up to 15 percent) and purchase them from the market if prices fall below the offer price. Which of these statements accurately represent the SEBI-mandated IPO process?