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Ipo allotment in hni category

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Akash2000

How ipo allotment done in big hni. It is prodata or lottery system. 

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Generous Generous
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lottery

Tech Guru Tech Guru
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Lottery if oversubscribed and you wont get every lot you have applied for. So, it is a kinda disappointment sometimes.

Deal Cadet Deal Cadet
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Then what is the difference between small and big hni in case of allotment

Generous Generous
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big hni has more chances of allotment. The probability would be more incase of big hni

Generous Generous
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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.

@ConfirmPassword @bikidas2060

Generous Generous
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When was the last time you applied in HNI category? The rules are updated recently and it is a lottery system now for all IPOs.
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Generous Generous
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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.

@Akash2000 @Rajkotian @bikidas2060 @ConfirmPassword

Deal Cadet Deal Cadet
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Ok for dharmaj ipo i applied as a small hni it subscribed 55x and for big hni also 57x that means chances are more in small than big if lottery system is there

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Generous Generous
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AFAIK, if we apply for lesser lots than the number of times issue oversubscribed, a lottery is done for one lot allotment. As an example, if the IPO is subscribed 10x in NII and an HNI applied for 9 lots, the allotment is done by lottery.

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.

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