IPO Terminology
Lot Size (Bid Lot)
In an IPO, shares are not offered individually but in blocks called 'lots'. The Lot Size is the minimum number of shares an investor must apply for. For retail investors, the total application value is capped at ₹2,0,000, and the lot size is calculated such that one lot value is around ₹14,000 to ₹15,000.
Why it matters
Retail investors can apply for a maximum of 13-14 lots, depending on the price of the share, keeping the total value under ₹2 lakhs.
Common Questions about Lot Size (Bid Lot)
Why does the lot size change for every IPO?
Lot sizes are calculated based on the price band, so that the minimum investment value per application stays close to the standard limit of ₹14,000 - ₹15,000.