The cut-off price is the offer price at which shares are issued to investors in an IPO, which can be any price within the specified price band. If you apply for the IPO at the cut-off price, you cannot enter a separate price.
An IPO book-building issue begins with a specified price range, within which you can place bids for your desired quantity in multiples of the lot size. For example, if the issue price range is ₹72-76, choosing the cut-off option indicates your willingness to subscribe to shares at any price discovered within the price band through the book-building process.
This increases your possibility of an allotment, allowing you to participate in the entire price-discovery process. If you select the cut-off option, you become eligible for allotment at any issue price discovered through the book-building process.
However, you cannot select the cut-off price for HNI applications (bids above ₹2,00,000).