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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. |
NII's cannot withdraw the bid only increase the bid quantity. |
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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