Your Application Summary
What is an IPO Lot Size?
When a company comes out with an IPO, it fixes a specific number of shares for one lot. A lot is the minimum number of shares you must buy to apply for that IPO. For example, a company might set its lot size at 15 shares. This means you must buy shares in multiples of 15, such as 15, 30, 45, or 60 shares. You cannot apply for 10 shares or 20 shares. You cannot buy just one share in an IPO (initial public offering). An IPO Lot Size Calculator helps you find how many lots you can buy in seconds.
This IPO Calculator simplifies your bidding process and helps you plan your investment money. The IPO Lot Size Calculator uses this specific lot size to calculate your total application capability.
The IPO Lot Size Calculator
To use the IPO Calculator, you need to provide three simple values. The tool uses these numbers to give you accurate results.
Formula for IPO Lot Size Calculations
The IPO Lot Size Calculator uses basic calculation to find your results. You can also calculate these values manually using these copy-paste formulas:
How the Calculator Works with an Example
Let us look at a practical example to understand the calculation clearly. Suppose you want to apply for a new IPO. You have a budget of ₹2,00,000 in your bank account. The company sets the upper price band at ₹500 per share. The lot size for this IPO is 30 shares.
First, the IPO Calculator finds the price of a single lot.
Cost of One Lot = ₹500 * 30 = ₹15,000.
Next, the tool divides your budget by the cost of one lot.
Maximum Lots = ₹2,00,000 / ₹15,000 = 13.33 lots.
Since you can only buy full lots, the tool rounds the number down to 13 lots.
- Total Application Amount: 13 lots * ₹15,000 = ₹1,95,000.
- Budget Remaining: ₹2,00,000 – ₹1,95,000 = ₹5,000.
- Total Shares Allotted at Maximum: 13 lots * 30 shares = 390 shares.
Investment Categories in an IPO
The IPO Lot Size Calculator also tells you your investor category based on your application amount. The Indian stock market divides investors into different categories.
Retail Individual Investors (RII) – Retail investors can apply for a maximum of ₹2,00,000 in an IPO. The total cost of your lots must stay below or equal to ₹2,00,000.
Non-Institutional Investors (NII / HNI) – If your application amount is more than ₹2,00,000, you enter the High Networth Individual (HNI) category. This category has two divisions:
Qualified Institutional Buyers (QIB) – This category belongs to large institutions like banks, mutual funds, and foreign investors. They follow a completely different application process.
Benefits of Using an IPO Lot Size Calculator
Using an IPO Lot Size Calculator saves you from complex manual calculations before an IPO closes.
