Cut-Off Price on WebNotes

How to apply at the cut-off price in an IPO on Zerodha

Tue, 12 May 2026 00:00:00 +0000

A cut-off price bid in a book-built Initial Public Offering instructs the registrar to accept your application at whatever price the issue is finally priced at, as long as that price falls within the disclosed price band. It is the default and recommended strategy for Retail Individual Investors (RIIs) because it eliminates the risk of exclusion if the issue is priced at the upper end of the band.

This guide explains what the cut-off price is, who can use it, how to tick it in Zerodha Kite, and how the UPI ASBA mandate block is calculated when you bid at cut-off.

Cut-off price in an Indian IPO

Mon, 11 May 2026 00:00:00 +0000

The cut-off price (also written as cutoff price) in an Indian Initial Public Offering (IPO) is a bidding option available exclusively to retail individual investors under the book-building process, under which the investor agrees to accept the final issue price at which the IPO is priced, whatever that price turns out to be within the price band, without specifying a particular price at the time of bidding. A cut-off bid is treated as equivalent to a bid at the upper end of the price band for the purpose of calculating the amount to be blocked under ASBA or UPI ASBA; if the final issue price is lower than the upper band, the excess amount is released to the investor after allotment. The cut-off option is specified by the SEBI (ICDR) Regulations, 2018 as a convenience mechanism for retail investors who do not wish to estimate whether the final issue price will be at the floor, the ceiling, or somewhere within the band.

IPO segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The IPO segment on Zerodha allows investors to apply for Initial Public Offerings (IPOs) using the UPI-based ASBA (Application Supported by Blocked Amount) mechanism. Zerodha supports IPO applications through Kite, Kite’s mobile app, and the Console back-office platform. Investors can also apply via the exchange IPO portals (NSE IPO and BSE Invest) using their demat account details.

IPO applications on Zerodha do not attract any brokerage charge. The only cost is potential allocation loss during the basis of allotment process if the issue is oversubscribed.