Are HNIs Allotted from The NII Reserved Allocation Quota of 15%?

HNI IPO is the application that represents the role of a Non-Institutional Investor (NII). It is a reserved part of the IPO allotment. In India, you will find the use of HNI IPO within the regulations of the IPO Stock Market. 

As per the regulations, NII investors have a reservation of 15% of the public issue. 

Rules of HNI IPO

  • HNI IPO application has a limit set above Rs 2 lakhs. 
  • It gets support from an ASBA.
  • HNI investors can do alterations in their applications when the volume rises. 
  • HNI bidding has a time limitation to follow for investors. 

HNI and NII: What’s the difference?

A high Net-worth Individual (HNI) is an investor who applies for shares of more than the value of 2 crore rupees. 

NII is the smaller version. For a Non-institutional bidder, the minimum amount of bidding is Rs. 2 lakhs. 

A New SEBI Rule for NII Category

SEBI introduced a new rule following a few major cases in HNIs which applies during the time of IPO allotment.

The new rules are slightly different from the previous version. The following rules are set:

  • Institutional investors get the offer of 50% of the share under the IPO
  • 5% of issuance reservation
  • 35% for retail investors 

What is HNI IPO Funding?

A good IPO gets positive responses and receives huge amounts of funding from many trustworthy HNI investors. 

Steps to Apply for HNI IPO

  1. Log in to your bank’s app or the net-banking website.
  2. Pick the “IPO section”.
  3. Choose the “IPO”.
  4. Enter all details to fill out the IPO application.
  5. Select the “Non-Institutional investor” option.
  6. Click on the submit button for the application.
  7. Visit the “IPO Order Book page” 
  8. Check the current status of the application.

HNI IPO Benefits

  • Manage large funds with higher chances of allotment. 
  • Get 7 to 10 days to manage your funds. 
  • Sell allocated IPO shares without any lock-in period. 
  • Can sell IPO stocks on listing days. 
  • No need to register with SEBI. 
  • NRIs can also take part in the Indian Stock Market via HNI. 

Sum Up! HNI IPO on Stock Market plays a major role in investing large funds. An investor gets higher equity shares in this type of share market investment.