FREE Account Opening + No Clearing Fees
Loading...

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

Zerodha (Flat Rs 20 Per Trade)

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.

8 Comments

8. Navin   I Like It. |Report Abuse|  Link|December 28, 2023 11:59:08 PMReply
I have come across a video on youtube claiming that SME IPO is alloted on the proportionality basis in HNI category and not the regular mainstream IPO where in all categories its only by lots. Is that right ?
7. Javeed   I Like It. |Report Abuse|  Link|December 26, 2023 7:26:16 PMReply
This above information is old. New rules have changed
6. MS   I Like It. |Report Abuse|  Link|September 29, 2023 3:38:43 PMReply
I have tried HNI category several times now and recently I tried it for JSW Infra. The NII category was subscribed around 18/20 times while I had applied for 50+ times. Yet, I haven't received any allotment. This is my 5/6th try and so far I haven't got any allotment in the HNI category. Can some one advise what I might be doing wrong?
6.1. Ayush Sadani   I Like It. |Report Abuse|  Link|December 15, 2023 3:45:59 PM
SEBI new rule impose NII allotment on lottery basis. sHNI will get allotment of lots of worth Rs. 2L (irrespective of application amount) and bHNI will get shares worth of Rs. 10L (rrespective of application amount). So technically lucky sHNI applcation will get shares worth of Rs. 2L (14 lots) and bHNI will get shares worth of Rs. 10L (66 lots).
6.2. Ghanshyam Dass   I Like It. |Report Abuse|  Link|December 15, 2023 4:07:59 PM
The explanation provided here by the old method, as per new method, everything is by lottery in case of over subscription.
Also @ Ayush Sadani , bHNI will get shares worth Rs, 2L
5. K BHUVANESH   I Like It. |Report Abuse|  Link|September 14, 2023 11:29:16 AMReply
Recently I had applied for Aeroflex Industries in NII category
I applied for 712 lots and it is oversubscribed by 126 times
In this application I had not even alloted a single share of the ipo.
5.1. Ayush Sadani   I Like It. |Report Abuse|  Link|December 15, 2023 3:51:18 PM
As per SEBI new rule, NII allotment will be done on lottery basis. sHNI application will get 14 lots and bHNI application will get 66 lots if lucky.
4. javadsha   I Like It. |Report Abuse|  Link|August 26, 2023 6:03:43 PMReply
i have applied for 100 lots of sbfc, which was oversubscribed 75 times and still got nil allotment,
the rta says they are not responsible, speak to company or broker through whom we have applied.
3. Pradip dubey   I Like It. |Report Abuse|  Link|July 25, 2023 2:01:00 AMReply
I have applied for 35 lots in newweb technology and it's subscribe for 31 time but did not get any lot can any explan it
3.1. bindu kumar   I Like It. |Report Abuse|  Link|August 9, 2023 11:30:51 PM
sNII (bids below ₹10L)      73.07
data shows , it is subscribed 73 times .
2. Krishna Chaitanya   I Like It. |Report Abuse|  Link|September 28, 2022 6:59:41 PMReply
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.
2.2. Rushi Mavani   I Like It. |Report Abuse|  Link|December 1, 2022 2:05:16 PM
Which brokerage did you use?
2.3. moizuddin   I Like It. |Report Abuse|  Link|July 3, 2023 11:33:12 PM
The explanation provided here by the old method, as per new method, everything is by lottery in case of over subscription
1. Sumukh Andela   I Like It. |Report Abuse|  Link|November 27, 2021 3:41:32 PMReply
We will get only 1lot or more if we apply more than nii categories