The criteria for IPO allotment for different categories:
IPO allotment in RII category
- In case the RII category is undersubscribed - Full allotment to all applicants
- Total RII applications are greater than maximum retail investors who could get allotment (Oversubscription) - Computerized lottery where the winners get a maximum of 1 lot of shares.
- Total RII applications are less than the maximum number of retail investors who could get allotment - Each retail investor will be allotted at least one lot. The remaining shares will be allocated on a pro-rata basis.
IPO allotment in NII category
NII IPO investor category is divided into 2 parts:
- Small NII (sNII)
Rs 2 lakhs to Rs 10 lakhs - 1/3 of total NII reserved portion
- Big NII (bNII)
More than Rs 10 lakhs - 2/3 of total NII reserved portion
IPO allotment in QIB category
In the QIB (Qualified Institutional Buyers) category, the allotment of shares is done on a proportionate basis in case of oversubscription.
- Mutual Funds Allocation:
- Up to 5% of the QIB category is reserved for mutual funds.
- If the demand from mutual funds exceeds the 5% allocation, shares are allotted proportionately within this limit.
- If the demand is less than 5%, mutual funds receive the full allotment of shares they applied for.
- Remaining Shares:
- The unsubscribed portion of the mutual fund allocation (if any) is added to the remaining 95% of the QIB category.
- These remaining shares are then distributed among other QIB investors pro-rata.
