IPO Guru

In simple terms, the lot size in an IPO refers to the minimum number of shares you need to purchase when applying for that IPO. Companies don't usually sell shares one at a time during their IPOs; instead, they bundle them into lots. For example, if a company sets a lot size of 50, it means you can only apply for shares in multiples of 50—like 50, 100, 150, and so on. Why Does Lot Size Matter? The lot size is crucial for several reasons: Accessibility : Lot sizes determine how much money you’ll need to invest in an IPO. If a lot size is large, say 100 shares, and each share costs ₹500, you'll need ₹50,000 to apply for just one lot. Smaller lot sizes make IPOs more accessible to retail investors who may not have large sums of money. Retail Investor Allocation : In many IPOs, a portion of the shares is reserved specifically for retail investors. The lot size helps manage this allocation by ensuring that shares are distributed evenly among many investors, rather than just a few bu...

If you’re looking to invest in an IPO ( Initial Public Offering ) and want to make the process smoother, ASBA (Application Supported by Blocked Amount) is your go-to method. It's super convenient and ensures that your money stays safe until shares are allotted. Let’s break down how you can apply for an IPO through ASBA in an easy, step-by-step way. What is ASBA? First off, what exactly is ASBA? ASBA is a mechanism that allows you to apply for an IPO without transferring the money immediately. Instead, your money is "blocked" in your bank account and is only debited when you get the shares. This means your funds continue earning interest while they’re in the account, and if you don't get the shares, the money remains untouched. Step 1: Check Eligibility Before diving in, make sure you have an active bank account with one of the banks that offer ASBA services. Most major banks in India, like SBI, HDFC, ICICI, and Axis, support ASBA. Also, you need a Demat account becaus...