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

HNI is part of the NII investor category. The basis of allotment for HNI depends on the type of IPO issue and the subscription levels.

In case of a mainboard IPO, the basis of allotment for HNI is as given below:

• In case of under subscription in NII category, all HNI investors will receive full allotment.
• In case of oversubscription, each HNI/NII investor will be allotted at least one lot as applicable to the NII category, subject to availability of shares. If any shares remain after the minimum allotment, they will be allotted on a pro-rata basis.
• Calculation methodology applied:
  • The maximum number of allottees (sNII and bNII) to whom NII allotment can be made is determined.
  • Based on the number of applications received per category, the pro rata number of maximum allottees per category is determined.
  • The number of allottees per category determined in this way is then allocated a minimum number of shares in a lottery.
  • Remaining shares, if any, will then be distributed to the maximum number of allottees selected above.

Note:

• In a mainboard IPO, there are small NIIs (sNIIs) and Big NIIs (bNIIs). The allotment method for sNII and bNII is the same.
• Even though the minimum bid amount for bNII is equivalent to Rs. 10 lakhs and above. In case of oversubscription, bNII will be allotted shares worth Rs. 2 lakhs. (i.e. the minimum NII bid lot).

In an SME IPO, allotment to HNI/NII is done on pro-rata basis such that each allotted NII gets a minimum bid lot. In an SME IPO, there is no sNII or bNII.

Further details and examples can be found under Basis of Allocation.