What is the difference between HNI and NII in an IPO Application?

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HNI

NII

Definition

Any bidder who bids for more than 2 lakhs falls under the HNI category. HNI stands for High Net Individuals. 

Non-Institutional Investors (NIIs) are a category of IPO investors who apply for shares worth more than ₹2 lakhs in a public issue. They are often smaller investors who have less funds than the larger institutional investors.

Classification

High Net Worth Individuals are part of the NII category.

Resident Indian individuals, NRIs, HUFs, Companies, Corporate Bodies, Scientific Institutions, Societies, and Trusts who apply for more than Rs 2 lakhs of IPO shares fall under the NII category.

Reservations

Since the HNI fall under the category of NII, they fall under the category of 15% reservation.

Not less than 15% of the Offer is reserved for the NII category

Restrictions on Bid Withdrawals

Since HNI forms the part of NII category they also cannot withdraw bids once placed.

NII's are not permitted to withdraw bids once placed.

Bidding at Cut-off Price.

Not allowed

NIIs are not allowed to bid for shares at the cut-off price, which is a privilege only available to retail investors.