You can place up to 3 bids in an IPO, each with different price and quantity combinations. Here’s how it works:
- The bid price must be within the given price range.
- The quantity must be in multiples of the IPO's minimum lot size.
- After submitting the bids, the highest bid amount will be temporarily blocked in your bank account to ensure you have enough funds if that bid is accepted.
Example:
For an IPO with a lot size of 195 shares:
- Bid 1: 1 lot at ₹72 per share
- Bid 2: 1 lot at ₹74 per share
- Bid 3: 2 lots at ₹76 per share
Here, Bid 3 is the highest. The blocked amount will be:
(195 shares × 2) × ₹76 = ₹29,640.