What are the Investor Categories in an IPO?

Different ways in which investors can apply for shares during an IPO

Investor categories through which the public can apply for shares during an IPO

Retail Individual Investor(RII)

This investor category is for individual investors who plan to apply for an IPO in small quantities. In this category, an individual investor can not apply shares worth more than Rs. 2,00,000. Retail Individual investors have an allocation of 35% of shares of the total issue size in Book Build IPO’s.

High Net-worth Individual (HNI)

This investor category is for individual investors who generally apply for the IPO in large quantities. An individual investor in this category should apply for shares worth a minimum of Rs. 2,00,000.

Non-institutional Investor(NII)

NRIs, companies, trusts etc who bid for more than Rs. 2,00,000 /- come under the Non-institutional Investor Category. They need not register with SEBI like RIIs. Non-institutional bidders have an allocation of 15% of shares of the total issue size in Book Build IPO’s.

Qualified Institutional Bidder (QIBs)

Financial Institutions such as banks, Foreign Institutional Investors(FII) and Mutual Fund houses who are registered with SEBI come under QIB investor category. These institutions generally apply in very large quantities

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