Is there a minimum lot size associated with FPOs? how does a company arrive at the lot sizes?
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Yes there is. In all ipo’s/fpo’s theres something called as a minimum application value. So the issuer will consult the lead manager and decide the minimimum equity shares to bid to fulfill the mimimum application value. This is how lot sizes are determined. cheers
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Usually all FPOs will have a minimum bid-lot, the number of shares which can be applied by an investor as minimum. Example bid-lot of 100
And they have bid-multiples too, that the investor can only bid, 100, 200, 300 etc., Same like the market lots in F&O segment.