Chapters in IPOs & Primary Market
Chapter 2 of 5 · 4 min read
How to read an IPO price band
The price band is the min to max issue price. Your bid must sit inside it, or use the cut-off.
Companies publish a floor and cap price, for example ₹100 to ₹105. Retail investors bid at a price in the band or tick cut-off to accept whatever final issue price is set. The application amount is lot size × bid price.
The final issue price is decided after book-building, once demand across the band is known. Bidding at cut-off means you take the final price, which is the top of the band if demand is strong.
Retail limits
Retail applications are capped at ₹2 lakh per PAN. You apply in lots, so check lot size and the minimum amount before bidding. UPI mandates block funds until allotment is final.
Pre-apply, where offered, lets you place the bid before the window opens. It is not the same as a confirmed allotment.
Key takeaways
- Bid inside the band or at cut-off.
- Application amount = lot size × price; retail cap is ₹2 lakh.
- Pre-apply does not guarantee an allotment.
Put it into practice
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Keep learning
- Subscription, allotment and listing day · IPOs & Primary Market
Education only, not investment advice. Updated 2026-10-09.