Ipo allotment in hni category
- 14130
- 15
-
- Last Comment
- Sort By
Lottery if oversubscribed and you wont get every lot you have applied for. So, it is a kinda disappointment sometimes.
big hni has more chances of allotment. The probability would be more incase of big hni
It's not lottery for HNI/NII category. Shares will be allotted proportionately.
For example, If issue is subscribed 2x in HNI/NII and you have applied for 1 lot, then 50% shares will be allotted.
I will give a clear example to everyone here about these allotments for mainstream IPOs only.
A Company ABC ltd has approached SEBI to raise funds through public in the form of IPO.
1 share value is 100 (FV 10) and lot will have 150 shares (Rs. 15000)
1) Retail investors are those who invest less than or equal to 2 lakhs in an IPO. A investor who invests upto 13 lots (Rs. 195,000) will be called as a retail investor. If the IPO is over subscribed and the retail investor application is allotted, then only 1 lot ( 150 shares or Rs. 15000)will be allotted to him no matter how many lots he may have applied.
2) SMALL HNI - Small HNIs are those investors who invests more than 2 lakhs and upto 10 lakhs in an IPO.
In this example, a investor who invests in the range of 14 lots - 66 lots (Rs. 2,05,000 - Rs.9,90,000) will be considered as a small HNI. If the IPO is over subscribed and the small HNI investor application is allotted, then only 14 lot ( 2100 shares or Rs. 2,05,000)will be allotted to him no matter how many lots he may have applied.
3) BIG HNI -Big HNIs are those investors who invests more than 10 lakhs and upto xxxx (not sure about the max amount, i guess it is 2cr) in an IPO.
In this example, an investor who invests in the range of 67 lots - max lots (Rs. 10,05,000 - max amount) will be considered as a big HNI. If the IPO is over subscribed and the big HNI investor application is allotted, then only 14 lot ( 2100 shares or Rs. 2,05,000)will be allotted to him no matter how many lots he may have applied.
4) The small HNIs and big HNIs will be allotted same number of lots or shares when their application is picked. The only difference is that BIG HNIs application pick probability is more than Small HNIs. This is due to the subscription figures in small HNIs compared to the big HNIs.
Hope this solves all your doubts for future IPOs. DOT.
So, it's mix of Lottery and Proportionate.
SEBI has suggested the discontinuation of proportionate allotment to HNIs, but I am not sure whether it came in action or not.
lottery