Investors who don't want to miss the bus but can't predict the issue price can bid at cut-off price. There is also a part earmarked for small shareholders in the book built portion and also a public issue for the retail investors later. This is the paid-up value at which the company issues shares. Most companies in India have a face value of Rs 10. The concept of face value is now changed and a company can have any face value, the minimum being Rs 1.
Most companies charge an additional amount over the face value.
This is the share premium. This is the minimum number of shares for which an application can be made. Applications can also be for higher amounts. Applicants may, or may not, get full allotment or partial allotment in the case of over-subscription. The payment may also be split into several stages.