What is bid1 bid 2 bid3 in IPO application?

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In a book-building IPO, where the price range is set by the issuing company, an investor can place up to 3 bids.

The investor has the option to submit bids with three different price and quantity combinations - Bid1, Bid2 and Bid3. The chosen price should be within the price range and the quantity should be a multiple of the minimum lot size.

The application amount of the highest bid of the 3 bids will be blocked from the bank account.

Topic: IPO Application Feedback

3 Comments

3. TSM

| Link|September 19, 2024 7:55:53 AMReply

Can we apply Same Lot and Same price in three bids for an IPO ?
Ex XYZ IPO , Lot 100 shares Cutoff 200Rs
Bid1 - 1 Lot at Cutoff price
Bid2 - 1 Lot at cutoff price
Bid3 - 1 Lot at cutoff price

Is this a Valid application ?

3.1. Nirav Patel

| Link|October 27, 2024 1:30:42 PM

Did you find the answer for your question

2. Mohit Mittal

| Link|September 13, 2024 5:17:22 PMReply

If I apply for BHNI application and bids are as follows:
Bid1: 67 lot (approx 10 lakhs for BHNI)
Bid2: 14 lot (above 2 Lakhs for SHNI)
Bid3: 1 Lot (for retail).
Is the approach helpful?

1. Gaurav Sahu

| Link|November 1, 2023 4:06:25 PMReply

For example in bid1 I apply for 1 lot and in bid for 2lot and bid3 for 3 lot. In this process for 3lot which is highest amount... This much amount will get blocked.
What will happen if get allotment for 2lot which is bid 2... Then will I be getting the remaining amount.

1.1. Vishal

| Link|April 19, 2024 6:43:09 PM

Bid which have largest no of quality

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