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What are the pros and cons of applying in NII quota? Are there more chances of allotment?

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The advantages and disadvantages of applying in NII quota-

Pros

Cons

NIIs can apply for more than Rs 2 lakhs in an IPO.

NIIs are not eligible for the price discount available for retail investors.

NIIs need not have to register with SEBI.

The reserved allocation is less (15%) when compared to RII (35%). This decreases the chances of allotment in case of oversubscription.

NIIs can withdraw from an IPO before the day of allotment.

  

The reserved allocation for NIIs is 15%, the lowest in the 3 investor categories in an IPO. QIB has 50% and RIIs have 35%. So, in an oversubscribed IPO, the chances of allotment are less. Also, Trusts, Corporate bodies and many other institutions fall in the NII category. This makes it a very competitive pool for allotment.

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