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What is 'Market Lot Size' and 'Minimum Order Quantity' for an IPO?

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IPO 'Market Lot' and 'Minimum Order Quantity' are two important factors investor should know while bidding for an IPO.

Minimum Order Quantity, as name says, is the minimum number of shares investor can apply while bidding in an IPO. If investor wants to bid for more shares, they can apply in multiples of IPO market lot (lot Size or IPO bid lot) of shares.

Usually (Market Lot * Lower side of the issue price) values around Rs 5500/- to Rs 6000/-.

Example:
IPO: Power Grid Corporation of India Limited IPO
Public Issue Price: Rs. 44/- to Rs. 52/- Per Equity Share
Market Lot: 125 Shares
Minimum Order Quantity: 125 Shares

Investor can apply in this IPO as below:

At Rs 44/- * 125 Shares * 1 Lot = Rs 5500/-
At Rs 44/- * 125 Shares * 2 Lot = Rs 11000/-
At Rs 44/- * 125 Shares * 18 Lot = Rs 99000/-

At Rs 52/- * 125 Shares * 2 Lot = Rs 13000/-
At Rs 52/- * 125 Shares * 1 Lot = Rs 6500/-
At Rs 52/- * 125 Shares * 15 Lot = Rs 97500/-

answered

3 Comments

3. Nafisa   I Like It. |Report Abuse|  Link|Oct 7, 2017 8:28:29 AMReply
First Timer...

When applying in an IPO, do we apply in lots of minimum nos or can apply as per the money that we want to invest???
2. Guest   I Like It. |Report Abuse|  Link|Aug 8, 2010 1:34:03 PMReply
Dear Falsu,

/newportal/ipo_faq_comments.asp?a=42

Refer this link for your answer.
1. faslu   I Like It. |Report Abuse|  Link|Aug 6, 2010 4:40:02 PMReply
wel sir , how did u take the lot size i , 2 and 18 forr 44 shares and for 52 1,2, and 15. plz explian th concept. soon

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