When you place multiple bids for an IPO, only the amount for the highest-value bid is blocked. This prevents unnecessary blocking of funds.
Example:
Bid 1: 1 lot (10 shares) at ₹20/share. Total = ₹ 200.
Bid 2: 2 lots (10 shares) at ₹18/share. Total = ₹ 360.
Since Bid 2 has the higher value, ₹360 will be blocked. Even though you've placed multiple bids, only the amount for the highest bid is considered. This ensures you have enough funds to cover the largest possible allocation.