What is a Lot Size?

A Lot Size refers to the minimum number of shares that one can bid for. In an IPO, one cannot apply for 1 share or 100 shares at random. Every investor must apply in lots with one lot being the minimum. Each lot differs from company to company. Below is the list of companies that got listed with each one having a different lot size. 

What is a Lot Size?

How many lots can I apply for?
Before answering these questions, let’s understand the four categories under which one can apply.

  • Retail: Retailers are those who do not fit the category of HNIs & QIBs. Retail investors generally have less money to invest in as compared to HNIs and QIBs. 

  • Small HNIs: Small High Net Worth Individuals are individuals who have substantially higher capital to invest with the minimum amount being ₹2 lakhs and the maximum being ₹10 lakhs.

  • Big HNIs: These have higher sums to invest in as compared to the above two. They have larger resources and capital to invest in markets. For an IPO, the minimum they can invest is ₹10 lakhs.

  • QIBs: They’re big institutions like pension funds, mutual funds, foreign institutions, etc. They have the maximum amount of wealth among all those listed above. 

If you’re a retail investor, the minimum lot you can apply for is one (generally less than or equal to
₹15000). The maximum lot, you can apply for is 13. The maximum investment that one can make from one account is below ₹2 lakhs. 

If you’re a small HNI, then the minimum amount you can invest is ₹2 lakhs but below ₹10 lakhs. 
If you’re a big HNI, then the minimum amount that you can invest is above ₹10 lakhs. 

(Note: the amount may vary depending on the lot size and the price band. Let’s say in the case of JSW Infrastructure, S-HNIs can apply a minimum lot of 14 with the price being ₹2,09,916 and the maximum they can apply is 66 Lots with the price Being ₹9,89,604. The amount will be close to the figures mentioned above).