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HNI IPO Application Guide (NII Allotment Rules, Benefits & Funding)

Published on Wednesday, August 4, 2021 by Chittorgarh.com Team

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HNI IPO Application Guide (NII Allotment Rules, Benefits & Funding)

A high Net-worth Individual (HNI) is a retail investor who bids for more than Rs 200,000 equity shares in an IPO. It is an investor category defined in IPOs in India. HNI IPO applications are part of the Non-Individual Investor (NII) portion.

HNI (High Net worth Investors) & NII (Non-Institutional Investors) can be considered the same. As per the SEBI rule, the issuing company should reserve a minimum of 15% of the IPO for the NII category.

Applying for IPO shares in the HNI category offers an opportunity to grab shares worth more than Rs 2 lakhs. It also increases the chance of allotment for retail investors. With easy IPO funding available in the market, an investor can make a quick and lot of money in just seven days. Most HNI investors take a loan worth 100's of crores for each IPO.


HNI IPO Meaning

To invest in the HNI category of an IPO, you need to bid for more than 2 lakh rupees of Equity shares. You can bid for the HNI IPO application only through ASBA using the Net banking facility or by submitting the physical IPO application form. HNI's cannot apply using the UPI-based IPO application offered by most discount stock brokers like Zerodha.


IPO HNI Category

HNI Category in an IPO is where you need to apply for more than Rs 2 lakh. HNI IPO application is part of (Non-Institutional Investor) NII reserved portion of IPO for allotment. As per IPO regulations in India, a minimum of 15% of the public issue is reserved for NII investors.


HNI IPO Rules

  • The minimum IPO application amount for HNI is Rs 2 lakhs.
  • HNI Allotment is on a proportionate basis or lottery system based on your application and NII over-subscription.
  • IPO shares are allotted within six working days from the Bid/Offer Closing Date.
  • The cut-off time to apply for IPO shares in the NII category is 4 PM IST on the issue closing date.
  • Similar to retail applications, the banks block the bid amount for HNIs. If applied from a savings bank account, you will continue getting the interest earnings on the blocked amount.
  • Maximum Bid by NII is the number of Equity Shares in the given lots not exceeding the size of the Offer (excluding the QIB Portion)
  • HNI/NII category also includes NRIs applying for more than Rs 200,000.
  • HNIs are not entitled to Bid at the Cut-off Price. They have to bid at a fixed price in the issue price range.
  • Not less than 15% of the Offer is reserved for Non-Institutional Portion.
  • NII bids are considered for allotment only when they are received at or above the Offer Price.

Difference between HNI and NII

IPO applications by HNI investors are considered part of the Non-Institutional Bidders (NII) category. Along with HNI investors, the NII reserved portion also includes NRIs, HUFs, Companies, FPIs, and Trusts.

The HNI and NII both represent the same NII category in an IPO for the retail individual investors.


Difference between HNI and Retail

Both High Net-worth Individuals (HNI) and Retail Individual Investors (RII) are individual people who apply for an IPO under two different reserved categories i.e. Retail and NII.

The Retail Portion is reserved for individuals who apply for not more than Rs 200,000 in an IPO. The HNI's are individuals who apply for more than Rs 200,000. The HNI bids are considered under the (Non-Institutional Investor) NII portion.

IPO HNI Vs Retail

  Retail investors (RII) High net worth individuals (HNI)

Eligibility

Resident Indian individuals and NRIs applying for shares not exceed Rs 2 Lakh in value.

Resident Indian individuals and NRIs applying for shares exceed Rs 2 Lakh in value.

Shares Available

Not less than 35% of the Offer

Not less than 15% of the Offer.

Basis of Allotment

Lottery.

A maximum number of bidders will be allotted 1 lot.

In the case of oversubscription, the chance of getting 1 lot is the same for an individual applied for one lot of Rs 15k or multiple lots up to Rs 2L.

Proportionate

But if you applied for fewer lots than the number of times issue oversubscribed, a lottery is drawn for one lot allotment. For example, if the IPO is subscribed 100 times in NII and an HNI applied for 90 lots, the allotment is done by lottery.

Cut-off price

Allowed to invest at the cut-off price.

Not allowed to use the cut-off price option. HNIs have to specify the exact price at which they would like to buy the IPO shares.

Withdraw or lower the Bids

Retail investors are allowed to withdraw or lower the bids

HNIs are not allowed to withdraw or lower the bids.


IPO HNI Limit

The IPO HNI category has the following limitations:

  • The HNI IPO application cannot be revised or withdrawn once placed.
  • HNI investors cannot use cut-off price while applying for an IPO. They have to provide the exact price to buy the IPO shares.
  • 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. If the HNI investor applied for 100 lots, he will get one lot for sure.
  • Many HNI takes funding or loan on interest to apply for an IPO. It makes most good IPOs subscribe heavily under this category.

HNI IPO Allotment Rules and Process

IPO shares are allocated proportionately in the NII category for HNI investors. Minimum allocation is one lot of equity shares in this category. One lot is guaranteed for HNI investors who have applied for more lots than the issue oversubscribed, after that it's on a proportionate basis. If you applied for less than the number of times issue oversubscribed, a lottery is drawn for 1 lot allotment. The allotment is not guaranteed in such cases.

Let's take an example where company XYZ subscribed 100 times in the NII category:

  • If you applied for 90 lots, the allotment will be done by lottery. (allotment not guaranteed)
  • If you applied for 100 lots, you will get 1 lot guaranteed.
  • If you applied for 150 lots, you will get 1.5 lots.
  • If you applied for 200 lots, you will get 2 lots.

Example

Zomato IPO Details

Issue Price

Rs 76

Issue Size

Rs 9375 Cr

Lot Size

195

One Lot Price

195*76 = Rs 14820

NII Subscription

34.25 Times

Minimum Lots for HNI

14 (Rs 2.07L)

Zomato IPO Allotment to NII Bidders

Category*

Lots Applied

Applications Received

Shares allotted per bidder

Allotment Ratio

2,730

14

2185

195

893:2185

7,995

41

31

233

1:1

8,190

42

25

239

1:1

63,960

328

2

1,868

1:1

129,870

666

3

3,792

1:1

132,795

681

2

3,877

1:1

164,775

845

1

4,811

1:1

781,755

4009

1

22,825

1:1

920,400

4720

3

26,873

1:1

1,052,610

5398

8

30,733

1:1

1,146,015

5877

1

33,460

1:1

1,248,000

6400

1

36,438

1:1

1,306,500

6700

1

38,146

1:1

1,405,170

7206

1

41,026

1:1

1,524,510

7818

1

44,511

1:1

40,789,320

209176

1

1190917

1:1

85,526,220

438596

1

2497089

1:1

* Category in the above table is a group of applications based on the shares applied in lots by investors. Unlike the RII with 13 categories (due to 13 lots); NII has a wide range of categories. Only a few are shown on the basis of the allotment document. That's the reason the Basis of allotment document says 'The category-wise details of the Basis of Allotment are as under (Sample):'

Sample Allotment

Name

Applied Qty

Lots

Price

Total Value

Shares Allotted

ZOMATO LIMITED

70200

360

76

53,35,200

2050

In the above sample allotment

Shares Allotted = (360 Lots Applied / 34.25 Times NII Oversubscription) * 195 Shares per lot = 2050


Zomato Limited IPO Basis of Allotment


HNI IPO Funding

HNI IPO Funding is a short-term loan offered by financial institutions to invest in IPO. These are 7-day loans with an interest rate of around 8% per annum. Good IPOs receive thousands of crore rupees funding from HNI investors.

HNI uses HNI Funding Cost Calculator to estimate the gains from the IPO.


HNI IPO Allotment Calculator

The HNI IPO Allotment Calculator shows you how many shares you will get allotted.


HNI IPO Allotment* = (Number of Lots Applied / NII Issue Over-subscription) * Shares in one lot

* Note that this formula is not applicable if the numbers of lots applied are fewer than the oversubscription in the NII category. In this case, allotment is done by lottery for 1 lot of shares.

Example:

  • Number of Lots Applied: 100
  • NII Oversubscription: 25 times
  • Shares in 1 lot: 15
  • HNI IPO Allotment = (100/25)*15 = 60 Shares

HNI Funding Cost Calculator

An HNI IPO Allotment Calculator tells the upfront cost of each share allocated to HNIs based on Issue Price, Oversubscription, and IPO funding interest rate.

HNI IPO funding cost calculation formula:


IPO Funding Cost = IPO Price * NII Over-Subscription * (Interest Rate/100) * (7/365 days)

Check HNI Funding Cost Calculator for Zomato IPO.


Apply IPO in HNI Category

A retail investor can apply for IPO shares in the HNI category using the online ASBA IPO Application facility offered by the net-banking website or app of the bank. HNIs cannot use UPI-based IPO applications to apply in the NII category as an HNI investor.

The process of applying for IPO shares as HNI is similar to retail ASBA IPO application using net-banking except; the application amount should be more than Rs 200,000 and you have to choose a specific price at which you would like to buy IPO shares. The cut-off price option is not available to HNIs.

Steps to apply IPO in the HNI category

  1. Log in to a net-banking website or app.
  2. Go to the IPO section.
  3. Select the IPO.
  4. Fill IPO application form with details.
  5. Choose investor category as Non-Institutional.
  6. Submit the application form.
  7. Go to the IPO Order Book page to check the status of the application.

Note: The banks or brokers submit the IPO applications to the exchange between 10 AM to 5 PM. The investor gets a unique application number from the stock exchange. It is a confirmation of the application accepted.


HNI IPO Benefits (Advantages)

  • Opportunity to buy shares worth more than Rs 2 Lakh.
  • Increased chances of allotment if you can manage large funds for 7 to 10 days.
  • The funds remain in your bank account and continue earning saving bank interest.
  • HNIs can sell allocated IPO shares in the market on listing day. There is no lock-in period.
  • IPO funding is available from almost all banks and NBFCs at a reasonable interest rate of 7 to 10% per annum.
  • HNI's doesn't have to register to SEBI or exchanges, unlike QIB.
  • HNI NRI's are also eligible to apply in IPO similar to resident Indians.

HNI IPO Risks (Disadvantages)

  • HNI investors cannot revise or withdraw the bid one placed.
  • The NII category for IPO with high demand usually gets heavily oversubscribed for HNI (300 to 1000 times), reducing the chances of allotment.
  • There is no guarantee of allotment if the number of lots applied is less than the number of times the issue is oversubscribed in the NII category. In this case, a lottery is drawn for the allotment of one lot.
  • Most HNIs take IPO funding on interest. In case IPO doesn't get listed well, the investor may incur a huge loss.
  • HNI investors cannot bid on cut-off price.
  • Some companies offer a discount to retail, employee, and shareholders. These discounts are not available to HNI investors.
  • The funds remain blocked in the bank account for 7 to 10 days. These funds can't be used for any other purposes.

IPO Investor Categories

IPOs in India have five investor categories. The issuer company reserves a portion of the public offerings in each category. The minimum requirement is retail portion is not less than 35%, the QIB portion is not more than 50%, and the NII portion is not less than 15% of the Offer.

  1. Qualified institutional buyers (QIB)

    The QIB reserved category includes public financial institutions, commercial banks, mutual funds, FPIs, VCFs, AIFs, FVCIs, insurance companies, provident funds, pension funds, National Investment Fund, and NBFCs. Up to 50% of the IPO are made available for allocation to QIB Bidders.

    Anchor Investor Portion

    A part of the QIB Portion is allocated by the company to Anchor Investors on a discretionary basis. The Anchor investors could be any individual, company, or Mutual Funds. A 33% of Anchor Investor Portion is reserved for Mutual Funds.

  2. Retail Individual Investors (RII)

    Individual investors applying for less than Rs 200,000 in an IPO are RIIs. The RII category also includes HUFs applying through their Karta and Eligible NRIs. Minimum 35% of the main-board public issue is reserved for retail.

  3. Employees

    Eligible employees of the company. It is an optional category and is used only by a few companies.

  4. Shareholders

    Eligible shareholders of the parent company. It is an optional category and is used only by a few companies.

  5. Non-Institutional Investors (NII)

    Non-Institutional Investors are the investors who bid for shares for more than Rs 200,000 in an IPO and are not QIBs. It includes Resident Indian individuals, Eligible NRIs, HUFs, companies, corporate bodies, scientific institutions, societies, family offices, trusts, and FPIs who are individuals, corporate bodies, and family offices.

Frequently Asked Questions

  1. 1. Can I apply in both the Retail and HNI Category of IPO?

    No, you cannot apply for both Retail and HNI categories for an IPO. The PAN number used in the application should be unique in an IPO. If you make two applications using the same PAN number, both applications will be rejected.

    Note that if a retail investor applies for more than Rs 2 Lakhs of shares in an IPO, the bid is considered as an HNI bid in the (Non-Institutional Investors) NII category.

     

  2. 2. Can I apply for IPO in HNI Category?

    Yes, any resident individual or non-resident individual (NRI) can apply in the HNI category. The HNI category is also known as Non-Individual Investors or NII.

    A retail IPO application of more than Rs 2 Lakh is considered an HNI application. The shares for this application are allocated under the (Non-Institutional Investors) NII category.

    Note:

    • IPO application in HNI Category can only be made using ASBA through the net-banking facility.
    • UPI cannot be used as a payment option for the HNI IPO application.
    • Brokers like Zerodha, Angel, or Upstox do not offer HNI IPO applications as they offer UPI-based IPO applications.
    • Similar to a retail application, funds remain blocked in your bank account. You continue earning interest on funds in your savings account.

     

  3. 3. How to apply IPO in HNI Category ICICI Direct?

    ICICI Direct offers online IPO applications for retail and HNI investors. You could also use ICICI Bank Net Banking to apply for an IPO. The benefit of using the ICICI Bank Net Banking IPO Application is, it allows you to use your demat account with other brokers.

    Steps to Apply in HNI Category ICICI Direct

    1. Login to ICICI Direct
    2. Click on the IPO tab in the top navigation bar
    3. Choose the IPO and click Apply button
    4. Choose the 'Non-Institutional' radio button
    5. Fill in the bidding details i.e. price and shares
    6. Submit the application.

     

  4. 4. How to apply IPO in HNI Category SBI?

    State Bank of India (SBI) offers online IPO applications for retail and HNI investors through its Net Banking facility. SBI offers 3rd Party IPO applications which means you could apply up to 5 IPO applications from the same bank account in an IPO. The 3rd Party IPO Application is the only way to apply in an IPO online for Minors, HUF, Corporate, etc.

    Steps to Apply in HNI Category ICICI Direct

    1. Login to SBI Net Banking Website
    2. Click on the e-services tab in the top navigation bar
    3. Click on Demat & ASBA Services in the left navigation bar
    4. Click on IPO (Equity)
    5. Choose the IPO
    6. Fill in the bidding details i.e. price and shares
    7. Submit the application.

     

  5. 5. How to apply IPO in HNI Category in Zerodha?

    Zerodha doesn't provide an IPO application for the HNI category. A stockbroker like Zerodha, Angel, Upstox, and Groww doesn't offer banking services. They offer UPI as a payment option for IPO applications. As UPI has a transaction limit of Rs 2L max, you cannot use UPI as a payment option for the HNI IPO application.

    If you have a Zerodha Demat Account, you could apply IPO in the HNI category using two ways:

    1. Banks' Net Banking facility
    2. Submitting the paper form to the bank

    Steps to apply IPO in HNI Category in Zerodha

    1. Log in to the net banking facility of your bank (i.e. SBI, ICICI, or HDFC)
    2. Go to the IPO investment section of the website or app
    3. Choose the IPO and click Apply button
    4. Choose 'Non-Institutional' as a category
    5. Choose CDSL as depository.
    6. Fill in your Zerodha Demat Account information
      • Depository Name: ZERODHA SECURITIES PRIVATE LIMITED
      • DP ID FOR IPO APPLICATION: 12081600XXXXXXXX
    7. Fill in the bidding details i.e. price and shares
    8. Submit the application.

    The allocated shares are transferred to your Zerodha demat account. You could sell them on the day of listing. The funds remain locked in your bank account and withdrawn at the time of allotment for allocated shares.

     

  6. 6. What is the minimum amount to be applied to qualify for HNI?

    The minimum amount for HNI IPO applications in the NII category is Rs 2 lakh. Any retail IPO application with over Rs 2 lakh is considered in HNI or (Non-Institutional Investor) NII category.

    The maximum bid in the NII category is the number of Equity Shares in the given lots not exceeding the size of the Offer (excluding the QIB Portion).

     

  7. 7. Can I apply for IPO in HNI Category through UPI?

    No, you cannot apply for IPO in the HNI category through UPI. The UPI payment gateway has a universal transaction limit of Rs 2 Lakh while the HNI application should be above Rs 2 Lakh.

    Following are two options available for HNI's to apply in IPOs:

    1. Banks Net-Banking Facility (ASBA)

      You can apply for IPO in HNI using ASBA offered by the net-banking facility of banks. All banks including public and private banks offer online IPO facilities on their net banking website and mobile app.

    2. Filling Paper Form (ASBA)

      You could visit the bank branch and apply in the paper form.

     

  8. 8. Is there any risk in applying in the HNI category?

    Investment in the HNI category of IPO is a high-risk investment. An investor should have an understanding of risks and rewards when investing in this category.

    Risks in applying in HNI Category

    • Investing Borrowed Money

      Most HNIs take IPO funding loans to invest in IPO. There are a few risks with this:

      1. You have to pay interest on the loan.
      2. In case the share prices go down on listing, you may have to book losses quickly.
      3. You have to sell allocated shares as soon as possible to repay the loan.
      4. You have to calculate the cost of each share carefully along with the estimation of oversubscription.
    • 10 Days Until Listing

      The IPO shares start trading in the market in 7 to 10 days. A lot can happen in those days. In case the market turns adverse in 10 days, you may incur huge losses on the listing day.

    • Number of Shares Applied

      The shares in the NII category for HNIs are allotted by the lottery system if the number of lots applied is less than NII over-subscription. In this case, you may not get the allotment. Even if you get it, it will be just one lot.

      HNIs with cash of 10-50 lakhs in their savings bank could apply with their funds. In this case, the risk is low but the chances of allotment are minimal too. Good IPO subscribes 300 to 1000 times in the NII category.

    • Cancel or Modify Bid

      HNIs are not permitted to revise or cancel the bid once placed. Most HNI's apply at the last minute.

    • Cannot apply on Cut-off Price

      HNIs are not permitted to apply at the cut-off price. They have to place the bid at a fixed price in the give price band. The HNIs doesn't get any allotment if the bid price is less than the price fixed for the IPO shares.

    HNIs take a calculated risk on IPO funding. They calculate and estimate how much subscriptions will be in the HNI category. They apply for 10 to 20 times higher lots than subscriptions with the funded amount.

    Example:

    • NII oversubscription (Expected): 100 Times
    • Applied Quantity: 1000+ Lots
    • Lot Size: 15 Shares
    • Allotment (Confirm): 10 Lots (if 100x Subscribed)
    • Interest Cost: Rs 120 per share (breakeven Point)
    • Total Interest Cost: Rs 120 * 10 Lots * 15 Shares per lot = Rs 18,000
    • Listing Gain per Share (Estimated): Rs 150 per Share
    • Profit: Rs 150 * 10 Lots * 15 Shares per lot = Rs 22,500
    • Net Profit (Estimated) = Rs 22,500 - Rs 18,000 (Interest Cost) = 4,500

    Note in the above calculation, HNI has to estimate:

    • NII Oversubscription
    • Listing day gains

    This is one of the key factors in calculating the grey market premium (GMP) of IPO shares.

     

  9. 9. Why do people use 7% as the Interest rate for IPO GMP calculation?

    HNIs take short-term loans of a few crores to a few hundred crore rupees to apply in an IPO. These loans are issued by public and private sector banks, NBFC, and other financial institutions.

    Most of these large-size loans come at around 7% to 8% per annum interest rate. They are issued for 7 days.

    The interest rate on IPO funding varies by:

    1. By IPO
    2. A person who is taking IPO funding
    3. Financial institutions offering IPO funding

     

  10. 10. What is the basis of allotment on the HNI category for an Individual?

    The basis of allotment in the HNI (NII) category is as below:

    • Proportionate if the number of applied lots is higher than the NII oversubscription.
    • Lottery for 1 lot if applied lots are less than the NII oversubscription.

    Example 1:

    • If you have applied for 400 lots and the issue is oversubscribed 400 times, you will get confirmed 1 lot.
    • If you have applied for 200 lots and the issue is oversubscribed 400 times there will be a lottery system and you stand a 50% chance to get 1 lot.
    • If you have applied for 600 lots and the issue is oversubscribed 400 times you will get 1.5 lots confirmed.

    Example 2:

    If the NII subscription is 40 times,

    • You should have applied for at least 40 lots to get a guaranteed single lot allotted.
    • If you apply for 39 lots then you may or may not get one lot (drawn by lottery).
    • If you apply for 45 lots then you get 1 lot plus some 3 or 4 shares.
    • If you applied for 200 lots then you will get 5 lots.

     

  11. 11. Does splitting funds in two HNI IPO applications increase allotment chances?

    Splitting the funds into two HNI IPO applications in an IPO does increase the chance of getting 2 lots but it also increases the chance of getting 0 lots. You could choose this strategy if you like the higher chance of getting 1 lot rather than increased chances of getting 2 lots.

    Below is a calculation posted by our IPO forum member IPOLogic to support the above view:

    Example 1

    • IPO Oversubscription (Expected): 100 times
    • Available Funds for 120 Lots
    1. You split the money in 2 accounts with 60 lots each. So, individual oversubscription factor = 60/100 = 0.6
      Chances of getting 0 lot: = (1-0.6) * (1-0.6) = 0.16 = 16%
      ii. Chances of getting 1 lot: = (0.6) * (1-0.6) + (1 - 0.6) * (0.6) = 0.48 = 48%
      iii Chances of getting 2 lot: = (0.6) * (0.6) = 0.36 = 36%
      iv Chances of getting at least 1 lot = 1 - 16% = 84%
    2. You don't split the money. So, individual oversubscription factor = 120/100 = 1.2 lot
      You will 100% chance of getting 1.2 lot
      ii chances of getting at least 1 lot = 100%

    Example 2

    • IPO Oversubscription (Expected): 100 times
    • Available Funds for 30 Lots
    1. You split the money in 2 accounts with 15 lots each. So, individual oversubscription factor = 15/100 = 0.15
      chances of getting 0 lot: = (1-0.15) * (1-0.15) = 0.7225 = 72.25%
      ii. chances of getting 1 lot: = (0.15) * (1-0.15) + (1 - 0.15) * (0.15) = 0.255 = 25.50%
      iii chances of getting 2 lot: = (0.15) * (0.15) = 0.0225 = 2.25%
      iv chances of getting at least 1 lot = 1 - 72.25% = 27.75%

    You don't split the money. So, individual oversubscription factor = 30/100 = 0.3 lot
    i. chances of getting 0 lot: = (1 - 0.30) = 70 %
    ii. chances of getting 1 lot: = 0.30 = 30%
    iii chances of getting 2 lot: = 0%
    iv chances of getting at least 1 lot = 1 - 70% = 30%

    So, if you want some chance to have 2 lots, then it increases your chance of getting 0 lots.

    Thus, it will decrease the chance of getting at least 1 lot too.

     

  12. 12. How many shares to apply for in an IPO to get a confirmed allotment in HNI category?

    To get a confirmed allotment in the HNI category, you need to apply for more lots than the final issue over-subscription figure. But the challenge is, to do this; you will have to guess how many times the IPO will oversubscribe in NII (HNI) Category.

    The IPO allotment in the Non-Institutional Investors (NII) category for HNIs is done either on a proportionate basis or lottery system. The allotment process is based on the number of lots applied and over-subscription in the NII category.

    Let's understand this using three scenarios. Assume an IPO oversubscribed 100 times.

    • If you have applied for 100 lots, you get a confirmed allotment of 1 lot.
    • If you have applied for more than 100 lots, you get a proportionate allotment over the confirmed one lot.
    • If you have applied for lesser than 100 lots, the allotment is done based on the lottery system and thus is not guaranteed.

    Example of Share Allotment

    Lots Applied

    Allotment

    20

    by lottery

    80

    by lottery

    100

    1 lot

    350

    3.5 lots

    1000

    10 lots

    The HNI IPO allotment calculator can help you derive the number of shares/lots to be applied for, to get confirmed allotment based on the estimated oversubscription figure.

     

  13. 13. How do I know how many times an IPO will get oversubscribed?

    It's not easy to predict the subscription level of an IPO. The subscription level depends on factors like the issuer company fundaments, issue size, issue prices, grey market premium and market conditions.

    Some analysts guess IPO over-subscription levels before IPO closes to estimate the HNI IPO Shares cost. But their prediction keeps changing until the last minute.

    Most good IPOs get heavily over-subscribed in the range of 300 to 1000 times under the NII category (HNI) and 15 to 30 times in the retail category by application.

    The oversubscription also depends on the demand in the grey market. The higher the demand for an IPO in the grey market, the higher are the chances of it getting oversubscribed.

    It is difficult to derive the expected over-subscription of an IPO based on the historic data as there are too many variables to it.

     

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2 Comments

2. EnGee  Aug 11, 2021 20:14 I Like It. | Report Abuse Reply
The Guide is very informative, logical, and in detail.
1. Prasanna Kumar  Aug 7, 2021 11:21 I Like It. | Report Abuse Reply
Wow... Finally some accurate info in internet for HNI. Very helpful. Thanks a lot.