(1) The issuer shall stipulate in the offer document, the minimum application size in terms of number of specified securities which shall fall within the range of minimum application value of  five thousand rupees to seven thousand rupees.

(2) The issuer shall invite applications in multiples of the minimum application value, an illustration whereof is given in .

(3) The minimum sum payable on application shall not be less than twenty five per cent. of the issue price:
Provided that in case of an offer for sale, the issue price payable for each specified security shall be brought in at the time of application.

Explanation: For the purpose of this regulation, “minimum application value” shall be with reference to the issue price of the specified securities and not with reference to the amount payable on application.

SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012

ICDR – SCHEDULE XIV

[See regulation 49 (2)]
ILLUSTRATION EXPLAINING MINIMUM APPLICATION SIZE

For inviting applications in multiples of the minimum value as referred to in sub-regulation (2) of regulation 49, the procedure is clarified by following example:

Assuming an issue is being made at a price of Rs. 900 per equity share. In this case, the issuer in consultation with the lead merchant banker can determine the minimum application lot within the range of 12 – 16 equity shares (in value terms between Rs.10,000- Rs.15,000), as explained hereunder:

The options given above are only illustrative and not exhaustive.