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What is Qib HNI in IPO?
Qualified Institutional Bidders (QIB’s) QIBs are mostly representatives of small investors who invest through mutual funds, ULIP schemes of insurance companies and pension schemes. QIB’s are prohibited by SEBI guidelines to withdraw their bids after the close of the IPOs. QIB’s are not eligible to bid at cut-off price.
What is retail and HNI in IPO?
Retail are those submitting bids of less than Rs 2 lakh, have 35 per cent reservations (15 per cent in case the IPO is by a company that doesn’t meet the profitability track record). While NII or more commonly referred to as HNIs have the remaining 15 per cent reservation.
How is allotment in the IPO HNI category done?
Say the shares are oversubscribed by 300 times. Then, in that case, the investor will be allotted proportionately, which in this case is 1 share. But then, as many HNI applicants choose for shares worth lakhs of rupees, they get a loan from their respective brokers to finance the same.
How do I book an IPO in HNI category?
The steps are as follows:
- Start by logging into your net banking account.
- Click on “IPO application” in the IPO tab.
- This will take you to the online IPO system.
- Investors must choose the HNI category there.
- The HNI cannot choose the cut-off price.
- A debit from the account will occur only after the allocation of shares.
What is HNI investors?
MUMBAI: In an attempt to ensure mid-sized investors do not get pushed out of public offers by very large investors, markets regulator Sebi on Monday proposed to segregate the high networth investor (HNI) portion in initial public offers (IPOs) into two parts.
Can a retail investor apply for HNI category for an IPO?
You cannot apply for Retail as well as HNI category for an IPO at a same time. If the retail applicant investor applies HNI category which is for more than Rs 2,00,000 of shares, they are automatically considered as HNI or High Networth Individuals.
For QIBs, the discretion of IPO shares allotment is done by merchant bankers. Further, in the case of over-subscription, the shares are allotted proportionately to the QIBs. For example, if a QIB applied for 10 lakh shares and the IPO got 5 times over-subscribed, then it will get only 2 lakh shares. 2.
How is the HNI IPO allotment decision made?
The HNI IPO allotment is done either proportionately or by a lottery system. The decision is made based on NII over-subscription and the number of lots applied by the investor. For example, if IPO subscribed 100x in the NII category and an investor applied for 90 lots, the allotment will be done by lottery.
What are the criteria for allotment of Rii’s in an IPO?
If demand is less than or equal to the offered retail proportion of the IPO shares, then full allotment will be made to the RII’s for all the valid bids. 2. Demand is more than the shares offered If demand is greater than the allocation to the retail proportion of shares offered, then the maximum number of RII’s will be allotted a minimum bid lot.