Chapter 5 of 8
What is a lot?
IPO Label · · About 1 minute to read
In an IPO you cannot buy one share. You buy a fixed bundle, and that bundle is called a lot.
In an IPO you cannot ask for any number of shares you like. The company fixes a bundle size.
New word
Lot
The smallest bundle of shares you can apply for. You can ask for one lot, two lots, three — never half a lot.
- One share
- One lot
Every IPO has its own lot size, and this app shows it on each IPO along with what one lot costs.
If the IPO is going to be picked by draw, asking for more lots does not make you more likely to be picked. It only changes how much you could get if you are.
Remember
An ordinary person applying for up to ₹2,00,000 in one IPO is called retail. Above that amount the rules are different.