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IPO guides · Reviewed 23 Oct 2026
An IPO lot is the smallest block of shares you can bid for. Minimum investment is the lot size multiplied by the upper end of the price band. Retail investors can apply for several lots as long as the total stays within ₹2 lakh.
Minimum investment = lot size × upper price band.
A retail application can be at most ₹2 lakh in value.
You bid in multiples of the lot. You cannot bid for part of a lot.
SME IPOs usually have larger lots, so the minimum investment is higher.
Each IPO fixes a price band and a lot size. Multiply the lot size by the upper price band to get the amount for one lot. That is the least you must invest.
Example: a 100-share lot with an upper price band of ₹150 means one lot costs ₹15,000. Two lots cost ₹30,000, and so on.
Retail Individual Investors can bid up to a total value of ₹2 lakh. Divide ₹2 lakh by the cost of one lot and round down to find the maximum number of lots.
Bids above ₹2 lakh fall into the Non-Institutional Investor category, which is allotted separately and has its own demand.
When a retail category is oversubscribed, allotment is by lottery among valid applications, usually one lot each. Applying for more lots does not raise the chance of being picked for the first lot. Family members applying with separate PANs each get their own application.
General information, not investment advice. Rules set by SEBI, RBI and the exchanges can change, so confirm current limits with your broker or the offer document.