Basic IPO FAQs

For an IPO,what is the 'Market lot size' & 'Minimum Order quantity'?

Investors should be aware of two key factors when bidding on an IPO: IPO 'Market Lot’ and IPO 'Minimum Order Quantity.

The minimum order quantity, as the name suggests, is the minimum amount of shares an investor can bid for in an IPO. Investors who want to bid on additional shares can submit multiples IPO Market Lot (lot size) or IPO bid lots.

Usually, the Market Lot * Lower Side of the Issue Price) values between Rs 5500/– to Rs 6000/–.

Exemple:IPO: Power Grid Corporation of India Limited
Public Issue Price: per equity share Rs. 44/- to Rs. 52/- 
Market Lot 125 Shares
Minimum Order Quantity: 125 Shares

This IPO is open to investors as follows:

At Rs 44/- *125 Shares * 1 Lot =
Rs 5500/­
At Rs 44/- *125 Shares *2 Lot =
Rs 11000/­
At Rs 44/- *125 Shares * 18 Lots =
Rs 9999/-

At Rs 52/- *125 Shares X 2 Lot = 
Rs 13000/­
At Rs 52/- *125 Shares X 1 Lot =
Rs 6500/­
At Rs 52/- *125 Shares X 15 Lot =
Rs 9750/-

What do you mean by IPO?

By whom the 'Price Band' is decided?

'Date of issue' is decided by whom?

What a registrar of an IPO does?

What is role of Lead managers in IPO?

What does 'follow on Public offering' or FPO means?

What are Primary market & Secondary market?

How can you define the life cycle of an IPO prospectus?

What are the life cycle of an IPO?

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How is Floor price different from Cut-off price for a book - building issue

Differentiate between RII,NII,QIB, & Anchor Investor

Retail investor, I would like to invest more than Rs 1 lakhs in an IPO. What is the best way to invest in the Non-institutional bidders' category? What are the pros and cons of investing in this category?

Is PAN number mandatory for applying in an IPO?

IPO remains open for how many days?

After submitting the application in IPO,what details I should keep?

Will I get guaranteed amount of shares if applying for an IPO?

Is investing in IPOs less riskier than in direct stock market?

Can someone apply through more than one application in IPO with the same name?

In how many days does the issue open?