Chittorgarh.com Logo
Loading...

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

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

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.

2 Comments

2. Krishna Chaitanya   I Like It. | Report Abuse |   Link | Sep 28, 2022 6:59:41 PM Reply
Can this be explained with the recently conclude Harsha Engineers IPO. I have applied for 134 lots which is way more than the subscription in Big NII ( i.e 10Lacs ) category. From the explanation provided above, I should get 1 lot guaranteed and a few more shares over this. But I was allocated nothing. Basis of Allocation document does not corroborate the explanation provided here at all.
1. Sumukh Andela   I Like It. | Report Abuse |   Link | Nov 27, 2021 3:41:32 PM Reply
We will get only 1lot or more if we apply more than nii categories