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Market Lot Size and Minimum Order Quantity

The two main important factors that an investor should be aware of are Market Lot Size and Minimum Order Quantity. As the name suggests, Minimum Lot Size is defined as the minimum count of shares the investor can apply for while bidding in an IPO.

If the buyer wants to invest on more shares than determined within the Minimum lot size, they will have to apply in the IPO bid lot of shares or multiple of IPO market lot size. The Market Lot is the lower side of the issue price and values between Rs.5500/- to Rs.6000/. Let’s take an example,

IPO: XX Limited IPO

Public Issue Price: Rs.40/- to Rs.50/- Per Equity Share

Market Lot: 125 Shares

Minimum Order Quantity: 125 Shares

The investor can apply in this IPO as below:

  • At Rs 40/- * 125 Shares * 1 Lot = Rs 5000/-
  • At Rs 40/- * 125 Shares * 2 Lot = Rs 10000/-
  • At Rs 40/- * 125 Shares * 18 Lot = Rs 90000/-
  • At Rs 50/- * 125 Shares * 2 Lot = Rs 12500/-
  • At Rs 50/- * 125 Shares * 1 Lot = Rs 6250/-
  • At Rs 50/- * 125 Shares * 15 Lot = Rs 93750/-
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