What is lot size in an IPO?

What a lot is

A lot is the minimum number of shares you can bid for in an IPO. You can bid for one lot or any whole number of lots, but never for part of a lot.

If an IPO has a lot size of 182 shares, you can bid for 182 shares, 364 shares, 546 shares, and so on. A bid for 200 shares is not possible.

Lots keep the application process simple. They also make the allotment fair, because winners in an oversubscribed IPO get a whole lot each.

How the lot size is set

For mainboard IPOs, SEBI requires the minimum application to be worth between ₹10,000 and ₹15,000. The company and its lead managers choose the number of shares that brings one lot into that range at the upper end of the price band.

So the lot size depends on the price. A cheaper share has a bigger lot, and a costlier share has a smaller one.

The lot size is announced together with the price band, at least two working days before the IPO opens. It appears in the price band advertisement and in the exchange notice for the issue.

Lot sizes in recent IPOs

Here are the lots for some recent mainboard IPOs, from their price band announcements. The value of one lot is our calculation at the upper end of the band.

Notice the pattern. The share prices differ by more than ten times, but one lot costs between ₹13,000 and ₹15,000 in every case.

A worked example

Take Bombay Coated and Special Steels: a price band of ₹78 to ₹82 and a lot of 182 shares.

1. One lot at the upper price costs 182 × ₹82 = ₹14,924.
2. One lot at the lower price would cost 182 × ₹78 = ₹14,196.
3. The retail limit is ₹2 lakh. At ₹82, 13 lots cost ₹1,94,012, and 14 lots would cost ₹2,08,936.
4. So a retail investor can bid for 1 to 13 lots, that is 182 to 2,366 shares.
5. A bid for 14 lots or more goes into the non-institutional (NII) category instead.

These are our calculations from the price band and lot size. The bank blocks the amount at the upper price if you bid at cut-off, so plan your balance on ₹82, not ₹78.

Why IPOs use lots at all

Lots solve two problems. First, they keep applications manageable. An IPO can receive several lakh applications, and whole lots make each one simple to check, count and allot.

Second, they make the allotment fair. When an IPO is oversubscribed, the registrar picks retail winners by lottery, and each winner gets one full lot. Without lots, a winner might get a handful of shares worth a few hundred rupees.

The ₹10,000 to ₹15,000 range also keeps the minimum within reach of most investors, whatever the share price.

Lot size and the ₹2 lakh retail limit

A retail investor can bid for up to ₹2 lakh. The number of lots that fits depends on the lot size and the price.

To find your maximum, divide ₹2 lakh by the value of one lot at the upper price, and round down. If one lot is worth ₹14,553, the maximum is 13 lots, or ₹1,89,189.

In an oversubscribed IPO, most retail winners get one lot only. Bidding for more lots does not usually raise your chance of getting shares. Read how IPO shares are allotted for why.

Lot size in SME IPOs

SME IPOs work differently. Since 1 July 2025, an individual investor must bid for at least two lots, and the application must be worth more than ₹2 lakh.

These are from the exchange notices; the amounts are our calculation at the upper price. For the full rules, read minimum investment in an SME IPO.

Lots in the other categories

Every category bids in whole lots, but the starting point differs.

• Small NII bids must be worth more than ₹2 lakh, so the minimum is the first whole number of lots above ₹2 lakh.
• Big NII bids must be worth more than ₹10 lakh.
• Employee and shareholder quotas, where offered, also use the same lot. The RHP states any separate limits.

The lot size itself is the same for everyone in the IPO. Only the number of lots changes.

After listing: do you trade in lots?

For mainboard IPOs, no. Once the shares list on NSE and BSE, you can buy or sell any number, even a single share. The lot matters only for the IPO.

So if one lot is more than you want to invest, another route is to buy fewer shares on the exchange after listing, at the market price. That price can be higher or lower than the IPO price.

For SME IPOs, yes. SME shares trade in lots on BSE SME and NSE Emerge. If you hold two lots, you can sell one lot or both, but not half a lot.

What to check before you bid

• The lot size and the price band. Both are in the price band advertisement and on each IPO page on IPO24by7.
• The value at the upper price. Multiply the lot by the cap price, not the floor.
• Your maximum lots. Work out how many lots fit within ₹2 lakh if you want to stay in the retail category.
• The board. SME IPOs need two lots and more than ₹2 lakh.

Common mistakes to avoid

• Bidding a number of shares that is not a whole lot. Your broker’s app will only accept whole lots.
• Using the floor price for your budget. If you bid at cut-off, the bank blocks the amount at the upper price.
• Going one lot over ₹2 lakh by mistake. The bid then counts as NII, where cut-off is not allowed.
• Assuming SME lots work like mainboard lots. An SME bid starts above ₹2 lakh and trades in lots after listing.

What to do next

See what the lot means in rupees in minimum investment in an IPO. Then read what a price band is and how to apply for an IPO, and check the lots for open and upcoming IPOs.

Sources: SEBI circular CIR/CFD/POLICYCELL/11/2015, 10 Nov 2015, on streamlining public issues: minimum application size of ₹10,000 to ₹15,000; NSE circular NSE/IPO/68604, 18 Jun 2025, on SME IPO bidding: individual investors to bid for two lots with an application above ₹2 lakh, for issues opening from 1 Jul 2025; Price band announcements and exchange notices for Bombay Coated and Special Steels, BLS Polymers, Jio Platforms and Antala Industries (October 2026).

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