Investors  can place up to 3 bids in an IPO application. For instance, the price range of an IPO is Rs. 100 to Rs. 120. investor can  place the following bids:

  • Bid 1. 10 shares at Rs. 100
  • Bid 2. 15 shares at Rs. 110
  • Bid 3. 20 shares at  Rs 120


In the above scenario the blocked amount is the highest of the three bids. The highest bid amount shall be Rs 2400 (10*110= 1000 ,15*110 = 1650, 20*120 = 2400 ). Hence, Rs 2400 shall be blocked.