ATTENTION EVERYONE - THINGS ARE NOW CLEAR REGARDING HNI ALLOTMENT.
HNI Category 1 - (2-10lakhs) —> No of applications required for 1 time subscription- 3344. Amount Reserved for this category - 69.71crs. Hence, 69.71crs/3344 = 2,08,488 worth of shares will be given to each allottee.
HNI Category 2 - (10lakhs+) —> No of applications required for 1 time subscription- 6688. Amount Reserved for this category - 139.43crs. Hence, 139.43crs/6688 = 2,08,488 worth of shares will be given to each allottee.
Conclusion - In case of oversubscription, you’ll get 2,08,488 worth of shares in both the HNI categories.
5% of 1400.14 crore for small hni = 70 crore rupees Minimum amount for small hni = 2,08,488 rupees Since allotment is lottery based if everyone applies only minimum amount ( 14 lots ) 70cr/2,08,488 = 3357 applications however many may apply between 14-67 lots, so no. of applications for 1x subscription can be 1300-1700 ?
6688 applications are required for 1 time subscription in 10lakh+ category.
As per my analysis, this category will receive less than 6688 applications. Hence, whosever will apply for 10lakh+ will be allotted at least 10 lakh worth of shares.
Given the high valuations of this IPO and 20% GMP, it is very difficult to decide whether to apply in this category or not.
Anyone planning to apply in 10lakh+ category? Please share your views.
Company's fundamentals looks good, I will defiantly apply in this IPO, and also in recent past 3-4 IPO there were lot's off negative sentiments around the market but on listing day, they outperformed.
If 6688 applications are received for 10 Lakh+ category and each one gets allotment of 10 lakh worth shares then it amounts 666.8 Crs where as only around 140 Crs are reserved for this category.
With effect of new HNI rules all funding matter are closed. No any one take NBFC funding.also the HNI cost is lower. So premium not dependent on hni cost. Really a good moov by SEBI. all applications in HNI self funded. every person have same chance of allotment as retail. GMP also became realiable who depends on price band fixe by company and what more left on table for investors.Now GMP convert in fix applications rate. As today for campus 👟 Activewear 210000 applications rate is 2500 and 1010000 applications rate is 14000. Now private funding fully closed.No importance of application with 100--200 crores. Before this rule not surety that you get allotment even if you invest 1 crore in IPO. But now every HNI investor have equal chance of allotment. Great moov by SEBI.
Ravu. R u sure that minimum allocation in this category is for 14 lots and not 1 lot in case of heavily oversubscribed issue. It will be injustice again that one applicant is getting 14 lots and another nil lot by lottery. Logically in case of oversubscription allocation should be minimum I.e. 1 lot only.
57.2. Imhilli| Link| Bookmark|
April 22, 2022 5:33:10 PM
IPO Guru (1200+ Posts, 700+ Likes)
Thanks for teaching us on new rules of HNI. Still I have few doubts 1. Will there be a new subscription category of small HNI and large HNI separately and people will be able to see the subscription ? 2. Will HNI applying for say Rs 205000 and HNI applying for say 995000 have chance for allotment for overall HNI subscription in HNI category of 1000x as both are going in lottery?
@hemant kumar, Yes, Minimum is 14 lots for small HNI. Due to oversubscription it will be either 14 lots or Nil. Same case as with retail .
On surface it looks injustice , but think for retail category there also similar case. We may think why can't allocate single share so that most of the investor get some allocation.
@Imhilli , 1. That is the expectation, will come to know during the bid process. 2. Yes . 205000 and 995000 have equal chance in case of oversubscription by application count , same as retail category. If application count is less then higher amount will be good so that will get more lots
@ravu. It appears to b unjustified. Allocation of 0 or 1 lot is not having significant difference but difference between o or 14 or 67 lots is very high and lacking reasonability in lottery. Kindly give link to reference document.
57.6. Imhilli| Link| Bookmark|
April 23, 2022 10:57:43 AM
IPO Guru (1200+ Posts, 700+ Likes)
@Ravu.. thanks for the clarification. Application of Rs 205000 and Rs 995000 will be having equal chance of allotment in case of lottery means people should not apply for more than 14 lots if the subscription figure is going to be high. Earlier chance of getting allotment was proportionate. That means it will become similar to the RII category.
Chennai Mein Agar kisi ko Funding [ Koshthak ] Rs 14892 Se 10 Lakh tak. Fundamentally Strong Aur Reputed Party honi Chahiye. Lallu Panju Sorry. Aur GM ka 20-25 Years ka Experience bhi. HNI Application ka Margins 20% . Chennai ke Stock market mein B. M. SURANA Ka Naam hi Guarantee hai. Aur 1Crore Se Jyada ki Funding NBFC Se karwate hain. #Condition Apply
My understanding for high net worth application Above (1) 2 lakh to 10 lakh and (2) Above 10lakhs to 99 lakhs on oversubscription, one should apply for just above 2 lakh application for first category and similarly for second category just above 10 lakhs as done in retail category. Is it correct.
As Retail applicant can not apply in HNI, Under new rules I think small HNI can also not apply in Big HNI. It is my assumption but need confirmation from experts...
46. ipobull| Link| Bookmark|
April 22, 2022 12:32:56 PM
IPO Guru (1000+ Posts, 1000+ Likes)
Many may be interested to know the new rules of SEBI, particularly w.r.t sub-division of HNI category. Here it is in a nutshell:
1. 35 percent of the IPO would be earmarked for NIIs. One third of the portion available to NIIs shall be reserved for applicants with application size of more than Rs 2 lakh and up to Rs 10 lakh rupees. Balance for HNIs applying for more than Rs 10 lakh rupees. 2. Allotment will be through draw of lots. This will reduce the edge that the big HNIs enjoy right now because of their ability to borrow heavily and bid. 3. Actually, an analysis done by Sebi of oversubscribed IPOs between January 2018 and April 2021) showed in the case of 29 IPOs on an average around 60 per cent of the applicants in the HNI category did not get any allotment. In a few cases, applications for as large as Rs 75 lakh were also unable to get allotment. This prompted for tweak in rules. 4. Anchor investors can sell half their shares after the 30-day lock-in, but can sell the remaining shares only after 90 days from the date of allotment. 5. Rating agencies to monitor use of IPO proceeds till 100 percent of it is spent. This is because many companies are known to misuse funds raised through IPOs.
Hope it helps at least some of the friends in this forum
Thanks @ipobull for valuable Information in simple language.
46.2. IProfitO| Link| Bookmark|
April 22, 2022 1:02:20 PM
Top Contributor (200+ Posts, 100+ Likes)
It's 15 percent not 35 percent for NII.
46.3. ipobull| Link| Bookmark|
April 22, 2022 1:18:35 PM
IPO Guru (1000+ Posts, 1000+ Likes)
@IProfitO, Sorry, it was a typo error by me. Thanks for correcting.
46.4. Imhilli| Link| Bookmark|
April 22, 2022 1:21:30 PM
IPO Guru (1200+ Posts, 700+ Likes)
Thanks for the explanation. Within 2-10 lakh HNI category, will the allotment be proportionate basis or it will be lottery basis like in retail? I mean whether the 10lakh application will better edge over 2 lakh or not?
46.5. sahab| Link| Bookmark|
April 22, 2022 1:49:24 PM
IPO Guru (1000+ Posts, 500+ Likes)
@Imhilli , If small HNI is not fully subscribed then it will be proportionate. If subscription is more then lottery. Same as retail but minimum allocation is 2L+ worth share.
10L+ (Big HNI) have better edge as crowd will be less, two third of HNI quota will be allocated to them. This is fair as Big HNI is taking more risk, more fund...
if apply for ipo through kotak securities is there a greater chance of application getting selected as lead manager is kotak mahindra capital ? I am new to market