IPO terms explained: price band, lot size, cut-off and more

Updated 19 October 2026

IPO pages are full of jargon. Here is what the common terms mean.

Glossary

• Price band — the range within which you can bid, e.g. ₹665–700. The final issue price is set within it after bidding.
• Lot size — the minimum number of shares per bid; you apply in multiples of it.
• Minimum investment — lot size × upper price band.
• Cut-off price — a retail option to bid at whatever final price is set, so your bid is not rejected for being too low.
• Subscription (×) — demand divided by shares on offer. 10× means bids for ten times the available shares.
• Anchor investors — large institutions allotted shares a day before the issue opens, usually with a lock-in.
• Fresh issue vs offer for sale (OFS) — a fresh issue raises new money for the company; an OFS lets existing holders sell.
• RHP (Red Herring Prospectus) — the offer document with business details, financials and risks.
• Registrar — the agency that processes applications and publishes allotment.
• Mainboard vs SME — SME IPOs list on the exchanges' SME platforms, are smaller and usually have larger minimum applications.
• Listing day — the first day shares trade on the exchange.