You could apply for one lot or a maximum investment of less than two lakh rupees in an IPO. However, the chance of you getting shares of the company would depend entirely on the subscription and allotment parameters.
For this, there are two possible scenarios that a trader or investor can face. These are given as follows.
1. Oversubscription of IPO’s in the retail category.
There are higher chances that the occurrence of oversubscription is very likely. Thus, it’s best practice to subscribe as many times as possible to land one lot in the IPO. Getting allotted a lot would be on a lottery basis.
2. IPO might not have a full subscription rate.
Many times, an IPO might not be that popular, and the subscription rates are less. You can apply for multiple lots and maximize your investment. But the lack of subscription might mean the downfall of the IPO and might not be as popular as well once listed.