IPO Cutoff Price Bid Calculator
For book-built IPOs (most mainboard IPOs), retail investors should bid at the cutoff price to maximize allotment probability. Bidding at cutoff means you accept whatever price is discovered in the book building. This is critical - if you bid Rs 490 and the issue price is discovered at Rs 500 (cutoff), your application is void and you miss allotment.
Investment Required
₹15,000
Allotment Probability
66.67%
Oversubscription
1.5x
Listing Gain Estimate (if allotted 30 shares)
At 20% premium
₹3,000
At 50% premium
₹7,500
At 100% premium
₹15,000
Retail Individual Investor (RII) quota is 35% of the issue. Allotment for oversubscribed IPOs is done via lottery — each applicant gets max 1 lot or nothing.
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Common questions about IPO Cutoff Price Bid Calculator
What is the difference between book-built IPO and fixed price IPO?
Book-built IPO: price is discovered through bidding over 3 days in a price band (e.g., Rs 480-500). 50% for QIBs, 15% for NIIs, 35% for retail. Fixed price IPO: single price set upfront, simpler application. Most large mainboard IPOs use book building. SME IPOs often use fixed price. As a retail investor, always bid at cutoff in book-built IPOs.
Can I modify my IPO application after submitting?
Yes. You can modify (revise quantity or price) or withdraw your IPO application until the issue closes. Modifications can be made through your broker or bank ASBA portal. Withdrawal is allowed up to 1 day before closure. Funds are unblocked immediately on withdrawal. This flexibility makes it safe to apply early - you can always withdraw if market conditions change.
What is the tax on IPO listing gains?
If you sell shares allotted in an IPO within 1 year of allotment, gains are Short Term Capital Gains (STCG) taxed at 20%. Selling after 1 year: LTCG taxed at 12.5% on gains above Rs 1.25 lakh/year. Most retail investors who flip on listing day pay 20% STCG. On a Rs 10,000 gain from an IPO sold same day: tax = Rs 2,000. Account for this in your actual return calculation.