IPO Price Band & Lot Size: What They Mean & Why They Matter
Upcoming IPOs – 2025
Company | Opening Date | Closing Date | Listing Date | Issue Price (Rs.) | Issue Amount (Rs.cr) | Listing at | Lead Manager |
Travel Food Services Limited IPO |
| Still open |
|
| 2,000.00 | BSE, NSE | Kotak Mahindra Capital |
Anthem Biosciences Limited IPO |
| Still open |
|
| 3,395.00 | BSE, NSE | Jm Financial |
Craze Limited IPO | Wed, Jul 02, 2025 | Fri, Jul 04, 2025 |
| 233.00 to 245.00 | 860.00 | BSE, NSE | Equirus Capital |
Indogulf Cropsciences Limited IPO | Thu, Jun 26, 2025 | Mon, Jun 30, 2025 | Yet to list | 111 | 200.00 | BSE, NSE | Systematix Corporate |
Sambhr Steel Tubes Limited IPO | Wed, Jun 25, 2025 | Fri, Jun 27, 2025 | Yet to list | 82 | 540.00 | BSE, NSE | Nuvama Wealth |
HDB Financial Services Limited IPO | Wed, Jun 25, 2025 | Fri, Jun 27, 2025 | Yet to list | 740 | 12,500.00 | BSE, NSE | Bnp Paribas |
Kalpataru Limited IPO | Tue, Jun 24, 2025 | Thu, Jun 26, 2025 | Tue, Jul 01, 2025 | 414 | 1,590.00 | BSE, NSE | ICICI Securities |
Globe Civil Projects Limited IPO | Tue, Jun 24, 2025 | Thu, Jun 26, 2025 | Tue, Jul 01, 2025 | 411 | 1,190.00 | BSE, NSE | MEGROW Capital Markets |
Ellenbarrie Industrial Gases Limited IPO | Tue, Jun 24, 2025 | Thu, Jun 26, 2025 | Tue, Jul 01, 2025 | 400 | 852.53 | BSE, NSE | Motilal Oswal |
Arisinfra Solutions Limited IPO | Tue, Jun 18, 2025 | Fri, Jun 20, 2025 | Wed, Jun 25, 2025 | 222 | 499.60 | BSE, NSE | Jm Financial |
Oswal Pumps Limited IPO | Fri, Jun 13, 2025 | Tue, Jun 17, 2025 | Fri, Jun 20, 2025 | 614 | 1,387.34 | BSE, NSE | IFL Capital |
Scoda Tubes Limited IPO | Wed, May 28, 2025 | Fri, May 30, 2025 | Wed, Jun 04, 2025 | 140 | 220.00 | BSE, NSE | Monarch Network Capital |
Prostarm Info Systems Limited IPO | Tue, May 27, 2025 | Thu, May 29, 2025 | Mon, Jun 02, 2025 | 105 | 168.00 | BSE, NSE | Choice Capital Advisors |
Schloss Bangalore Limited IPO | Mon, May 26, 2025 | Wed, May 28, 2025 | Mon, Jun 02, 2025 | 435 | 3,500.00 | BSE, NSE | Jm Financial |
Asegi Vopak Terminals Limited IPO | Mon, May 26, 2025 | Wed, May 28, 2025 | Mon, Jun 02, 2025 | 235 | 2,800.00 | BSE, NSE | ICICI Securities |
Belrise Industries Limited IPO | Wed, May 21, 2025 | Fri, May 23, 2025 | Wed, May 28, 2025 | 216 | 2,150.00 | BSE, NSE | Axis Capital |
Borana Weaves Limited IPO | Thu, May 22, 2025 | Tue, May 27, 2025 | Tue, May 27, 2025 | 216 | 1,448.00 | BSE, NSE | Beeline Capital |
Ather Energy Limited IPO | Mon, Apr 28, 2025 | Wed, Apr 30, 2025 | Tue, May 06, 2025 | 321 | 2,981.06 | BSE, NSE | Axis Capital |
Quality Power Electrical Equipments Limited IPO | Wed, Feb 14, 2025 | Tue, Feb 18, 2025 | Mon, Feb 24, 2025 | 425 | 387.90 | BSE, NSE | Pantomath Capital Advisors |
Hexaware Technologies Limited IPO | Wed, Feb 12, 2025 | Fri, Feb 14, 2025 | Wed, Feb 19, 2025 | 708 | 8,750.00 | BSE, NSE | Kotak Mahindra Capital |
Ajax Engineering Limited IPO | Mon, Feb 10, 2025 | Wed, Feb 12, 2025 | Mon, Feb 17, 2025 | 629 | 1,269.35 | BSE, NSE | ICICI Securities |
Dr. Agarwal’s Health Care Limited IPO | Wed, Jan 29, 2025 | Fri, Jan 31, 2025 | Tue, Feb 04, 2025 | 402 | 3,027.26 | BSE, NSE | Kotak Mahindra Capital |
Denta Water and Infra Solutions Limited IPO | Mon, Jan 22, 2025 | Wed, Jan 24, 2025 | Mon, Jan 29, 2025 | 294 | 220.50 | BSE, NSE | Smc Capitals |
Stallion India Fluorochemicals Limited IPO | Thu, Jan 16, 2025 | Mon, Jan 20, 2025 | Thu, Jan 23, 2025 | 90 | 199.45 | BSE, NSE | Sarthi Capital Advisors |
Laxmi Dental Limited IPO | Mon, Jan 13, 2025 | Wed, Jan 15, 2025 | Mon, Jan 20, 2025 | 428 | 698.06 | BSE, NSE | Nuvama Wealth |
Quadrant Future Tek Limited IPO | Tue, Jan 09, 2025 | Mon, Jan 13, 2025 | Tue, Jan 14, 2025 | 200 | 290.00 | BSE, NSE | Sundea Capital Advisors |
Standard Glass Lining Technology Limited IPO | Mon, Jan 06, 2025 | Wed, Jan 08, 2025 | Mon, Jan 13, 2025 | 140 | 410.05 | NSE, BSE | IFL Capital |
What is an IPO Price Band?
When a company decides to go public, it sets a Price Band for its shares. This is basically the range of prices at which you can bid for the shares during the IPO subscription period.
Example:
Suppose the IPO Price Band is ₹200–₹210 per share. It means you can bid for shares at any price within this range.
The final price at which shares are allotted is called the Cut-off Price — usually the highest end of the band if demand is good.
Why Do Companies Use a Price Band?
Price Discovery:
A flexible price band allows the company to find the right price based on market demand.
Better Subscription Response:
Investors feel they have a say in the final price. Large investors (QIBs) and retail investors bid competitively.
Market Fairness:
It prevents under-pricing or over-pricing the shares.
Who Decides the IPO Price Band?
The company, along with its merchant bankers and lead managers, studies:
- Company valuation
- Peer comparison
- Future growth potential
- Market conditions
Based on this, they decide the minimum and maximum price for the IPO.
What is an IPO Lot Size?
Lot Size means the minimum number of shares you must apply for in an IPO. You can’t apply for just 1 share — you must apply for at least 1 lot, and in multiples of that lot size.
Example:
If the Lot Size is 50 shares and the price band is ₹200–₹210, then your minimum investment will be:
50 shares × ₹210 = ₹10,500
So, for retail investors, the lot size determines how much money you need to apply.
Why is Lot Size Important?
✔ Minimum Investment Limit:
SEBI has guidelines that keep IPO minimum application amounts affordable for retail investors.
✔ Fair Allotment:
Fixed lot sizes ensure fair distribution and easy allotment process.
✔ Multiple Lots Possible:
You can apply for more than 1 lot (like 1, 2, or 3 lots) but always in whole multiples.
How to Decide Your Bid Amount
Pick a price within the price band — or choose ‘Cut-off Price’ to maximize your allotment chances.
Calculate the minimum investment: Highest price in the band × Lot Size.
Decide how many lots you want to apply for.
Pro Tip:
Always apply at the Cut-off Price if you are a retail investor — it improves the chance of getting shares.
Real Example: Understanding Price Band & Lot Size
Let’s say a popular tech startup comes with an IPO:
- Price Band: ₹95–₹100 per share
- Lot Size: 150 shares
- Maximum Retail Investment: Up to ₹2 lakh
Minimum investment: 150 × ₹100 = ₹15,000
If you want to invest ₹60,000, you’ll apply for 4 lots (150 × 4 = 600 shares).
Things to Check Before Applying
✔ Always bid at the upper end or Cut-off if you believe demand will be strong.
✔ Calculate your budget based on lot size — don’t block more funds than you can afford.
✔ Read the DRHP or IPO Report to understand if the valuation justifies the price band.
✔ Remember, you cannot bid below the price band — those bids get rejected.
How SEBI Regulates Lot Size
SEBI sets a range for retail investors:
- Minimum Investment: Around ₹10,000–₹15,000 per lot
- Maximum Application: Up to ₹2 lakh for retail category
This keeps IPOs accessible for small investors too.
FAQs on IPO Price Band & Lot Size
Q1: Who fixes the IPO Price Band?
A: The company and its lead managers decide the band after studying valuations and market conditions.
Q2: Can I apply below the price band?
A: No. Bids below the lower band are rejected automatically.
Q3: Should I always choose the Cut-off Price?
A: For retail investors, yes — it gives you the best chance to get an allotment if the issue is oversubscribed.
Q4: Can the Price Band change?
A: Yes. Sometimes companies revise the band during the IPO if there’s strong or weak demand.
Q5: What is the final price called?
A: It’s called the Cut-off Price — usually the highest end of the band in a good IPO.
Q6: Can I apply for any number of shares?
A: No. You must apply for at least 1 lot and in whole multiples.
Q7: Who decides the Lot Size?
A: It’s fixed by the company and SEBI guidelines to ensure the minimum investment falls within the prescribed limits.
Q8: Why does Lot Size vary from IPO to IPO?
A: It depends on the price band and the target minimum investment. Higher price band → smaller lot size, and vice versa.
Q9: Can I sell part of my lot on listing day?
A: Yes! Once shares are listed in your Demat, you can sell any number of shares you own.
Q10: Is there a maximum lot size for retail investors?
A: No fixed maximum for lots — but total value must not exceed ₹2 lakh for the retail quota.
Conclusion
The IPO Price Band and Lot Size may sound like small details, but they make a big difference to your IPO strategy. Always check the price band, understand your budget based on lot size, and plan your bids smartly. This way, you’ll invest confidently and avoid last-minute surprises!
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