Table of Contents
What is meaning of NII in IPO?
non-institutional investors
In a bid to allow smaller non-institutional investors (NII) a fair share of participation in initial public offerings, market regulator SEBI has proposed to earmark one-third of the allocation for NIIs with application sizes ranging between ₹2 lakh and ₹10 lakh.
Who are NII investors?
NII – Non-Institutional Investor Resident Indian individuals, non-resident Indians (NRIs), Hindu Undivided Families (HUFs), corporate bodies, companies, trusts, science institutions, and societies. Investors can invest more than Rs. 2 lakh. A minimum of 15\% of the IPO is reserved for the RII category.
How are IPO shares allocated in case of oversubscription?
In other words, the IPO has been oversubscribed by 20 times and the number of investors has also gone up by 10 times. In this scenario, all investors cannot be allocated at least one lot each as stipulated by the SEBI. Hence, the allocation will be based on a computerised lottery draw.
What is difference between QIB and NII?
Any bid exceeding this amount is considered in the NII category. NIIs are commonly referred to as high net-worth individuals. On the other hand QIBs are institutional investors who posses the expertise and the financial muscle to invest in the securities market.
Who qualifies as HNI in India?
High Networth Individuals are widely defined as those having an investible surplus of more than 5 crores. By 2017, there were close to 2,70,000 HNIs in India. This number is predicted to touch 9,50,000 by 2027. HNIs have a combined wealth of almost $ 1.5 trillion or 58\% of India’s GDP.
How many HNIs are there in India?
High Net-worth Individuals (HNIs) are widely defined as those having an investible surplus of more than Rs 5 crore. By 2027, there will 9.5 lakh HNIs from close to 3 lakh currently. HNIs form 58 percent of India’s GDP, with close to 30 percent based out of Mumbai and Delhi alone.
What is the meaning of NII in share market?
Non-institutional bidders
Non-institutional bidders (NII) Resident Indian individuals, Eligible NRIs, HUFs, companies, corporate bodies, scientific institutions, societies and trusts who apply for than Rs 2 lakhs of IPO shares falls under NII category. Many of these investors apply for 100’s of crore rupees worth of shares under this category.
What is the minimum amount required in IPO for NII category?
As per the SEBI rule, the issuing company should reserve a minimum of 15\% of the IPO for the NII category. Applying for IPO shares in the HNI category offers an opportunity to grab shares worth more than Rs 2 lakhs.
Can a HNI apply for an IPO through UPI?
HNIs cannot use UPI-based IPO applications to apply in the NII category as an HNI investor. The process of applying for IPO shares as HNI is similar to retail ASBA IPO application using net-banking except; the application amount should be more than Rs 200,000 and you have to choose a specific price at which you would like to buy IPO shares.
Do Nii need to register with SEBI for IPO?
NII need not to register with SEBI. Not less than 15\% of the Offer is reserved for NII category. High Net-worth Individual (HNI) who applies for over Rs 2 Lakhs in an IPO falls under this category. Allotment Basis – Proportionate.
How to apply for Zomato IPO as an HNI?
Check HNI Funding Cost Calculator for Zomato IPO. A retail investor can apply for IPO shares in the HNI category using the online ASBA IPO Application facility offered by the net-banking website or app of the bank. HNIs cannot use UPI-based IPO applications to apply in the NII category as an HNI investor.