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.

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.