The short answer
The minimum investment in an IPO is one lot at the upper end of the price band. For mainboard IPOs, SEBI requires one lot to be worth between ₹10,000 and ₹15,000, so that is the usual minimum.
The maximum depends on your category. A retail investor can bid up to ₹2 lakh. Larger bids go into the non-institutional investor (NII) category.
SME IPOs are different. An individual must bid for at least two lots, worth more than ₹2 lakh in all.
How the minimum is worked out
The formula is simple:
Minimum investment = lot size × upper end of the price band
You use the upper price because many retail investors bid at cut-off. When you do, the bank blocks the amount at the cap price. If the final price is lower, the extra is released after allotment.
For example, an IPO with a price band of ₹142 to ₹150 and a lot of 100 shares needs ₹15,000 for one lot.
Limits by investor category
Each category has its own range. These apply to mainboard IPOs.
| Category | Who | Bid range |
|---|---|---|
| Retail | Individuals | One lot up to ₹2 lakh |
| Small NII | Individuals and others | Above ₹2 lakh up to ₹10 lakh |
| Big NII | Individuals and others | Above ₹10 lakh |
| QIB | Institutions such as mutual funds | Set in the RHP |
Some IPOs also have an employee quota or a shareholder quota, with their own limits. The RHP lists them. For how each category is treated, read Retail, NII and QIB categories.
A worked example
Here are the amounts for Bombay Coated and Special Steels: a price band of ₹78 to ₹82 and a lot of 182 shares. The amounts are our calculation at ₹82.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail, minimum | 1 | 182 | ₹14,924 |
| Retail, maximum | 13 | 2,366 | ₹1,94,012 |
| Small NII, minimum | 14 | 2,548 | ₹2,08,936 |
| Small NII, maximum | 67 | 12,194 | ₹9,99,908 |
| Big NII, minimum | 68 | 12,376 | ₹10,14,832 |
So ₹14,924 gets you into this IPO, and ₹1,94,012 is the most you can bid as a retail investor.
How the money is held
You do not pay the IPO amount upfront. The money is blocked in your own bank account through ASBA, or through a UPI mandate if you apply from a broker’s app.
- When you apply, the bank sets aside the bid amount. It stays in your account but cannot be spent.
- On allotment, only the amount for the shares you get is debited.
- If you get nothing, the whole amount is released.
- Under SEBI’s T+3 timeline, debits and releases are done on the second working day after the issue closes.
UPI can be used for applications up to ₹5 lakh. For larger bids, apply through net banking ASBA. See how the UPI mandate works.
Bidding at cut-off or at a price
How much is blocked also depends on how you bid.
At cut-off, you agree to pay whatever final price is set. The bank blocks the amount at the upper end of the band. Only retail investors, employees and eligible shareholders can bid at cut-off. Read what cut-off price means.
At a price, you name the most you will pay, within the band. The bank blocks the amount at that price. If the final price is higher than your bid, you get nothing. Non-institutional investors must bid this way.
Many retail investors bid at cut-off, because a bid below the final price gets nothing.
How many shares you are likely to get
Your minimum investment is also, very often, your maximum allotment. In a popular IPO, retail winners are picked by lottery and each gets one lot only.
So a bid for 13 lots in an oversubscribed IPO usually ends with one lot allotted, or none. The rest of the money is released. If the retail portion is not fully subscribed, everyone gets what they bid for.
Applying for family members
Each family member can apply from their own demat account, with their own PAN and a bank account or UPI ID in their own name. Each application has its own minimum and its own ₹2 lakh retail limit.
You cannot pay for someone else’s application from your account. Applications paid from an account in another person’s name are rejected.
Minimum investment in SME IPOs
Since 1 July 2025, an individual investor in an SME IPO must bid for at least two lots, and the bid must be worth more than ₹2 lakh. Cut-off bidding is not allowed in SME IPOs, so you enter a price.
For example, Antala Industries has a revised price band of ₹62 to ₹66 and a lot of 2,000 shares. Two lots at ₹66 cost ₹2,64,000 (our calculation).
The full rules, with more examples, are in minimum investment in an SME IPO.
Where to find the numbers
The price band and lot size are in the price band advertisement, published at least two working days before the IPO opens, and in the exchange’s notice for the issue. The RHP’s Offer Procedure section explains the bid limits for each category.
On IPO24by7, each IPO page has a table called Minimum and maximum investment. It shows the lots, shares and amount for every category, worked out from the price band and lot size, and marked as our calculation.
Planning your money
- Keep the full amount in the account. If the balance is short when you approve the mandate, the block fails and so does your bid.
- Count every open IPO. Each application blocks its own amount. Two IPOs open together need two amounts.
- Plan for about a week. Money is blocked from the day you apply until the second working day after closing.
- Budget at the upper price. Even if you hope for a lower final price, the block is at the cap when you bid at cut-off.
Common mistakes to avoid
- Using the lower price to plan. The bank blocks at the upper price for cut-off bids.
- Crossing ₹2 lakh by one lot. The bid moves to NII, where cut-off is not allowed and the allotment rules differ.
- Forgetting other blocked amounts. A second IPO in the same week needs a separate balance.
- Applying twice with one PAN. Only one application per PAN counts in the same category; extras are rejected.
- Treating the SME minimum like the mainboard minimum. It is more than ₹2 lakh, not about ₹15,000.
What to do next
Learn what a lot is and how it is set, then read how to apply for an IPO. Each IPO page on IPO24by7 shows the minimum investment for every category, worked out from the price band and lot size.
Sources: SEBI circular CIR/CFD/POLICYCELL/11/2015, 10 Nov 2015: minimum application size of ₹10,000 to ₹15,000 in public issues; SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, definitions of retail individual investor (up to ₹2 lakh) and non-institutional investor, and the split of the NII portion; NSE circular NSE/IPO/68604, 18 Jun 2025, on SME IPO bidding: two lots and above ₹2 lakh for individual investors; Bombay Coated and Special Steels price band announcement and RHP (October 2026), for the worked example.
Frequently asked questions
What is the minimum investment in an IPO in India?
One lot at the upper end of the price band. In mainboard IPOs, SEBI requires this to be between ₹10,000 and ₹15,000. In SME IPOs, an individual's minimum is two lots worth more than ₹2 lakh.
What is the maximum a retail investor can invest in an IPO?
₹2 lakh per IPO. Bids above ₹2 lakh go into the non-institutional investor (NII) category, which has different rules.
Is the IPO amount debited when I apply?
No. It is blocked in your bank account through ASBA or a UPI mandate. Only the amount for the shares allotted to you is debited, and the rest is released after allotment.
Why is more money blocked than I expected?
If you bid at cut-off, the bank blocks the amount at the upper end of the price band. If the final price is lower, the difference is released after allotment.
Can I apply for two IPOs with the same money?
No. Each application blocks its own amount until allotment. If two IPOs are open together, you need enough balance for both bids.
Can I invest less than one lot in an IPO?
No. One lot is the smallest bid allowed. After listing, mainboard shares trade in any quantity, so you can buy fewer shares then, at the market price.