IPOs in India
Who Gets What: QIBs, NIIs and Retail
Shares are reserved for institutions, wealthy investors and small retail investors, and heavy demand can leave individuals with no allotment.
Reserved portions differ.
QIB
Qualified institutional buyers such as mutual funds and insurers usually take up to half.
NII
Non-institutional investors, applying above ₹2 lakh, get around 15 per cent.
Retail
Individuals applying up to ₹2 lakh get around 35 per cent.
Lottery
When a category is heavily oversubscribed, allotment is by lottery, so many applicants get nothing.
A retail application
An investor applies for one lot but receives no shares in a popular IPO.
Assuming more applications improve odds
One application per PAN is the rule for retail.
Key takeaways
- Institutions take up to half.
- Retail gets about 35%.
- Retail is capped at ₹2 lakh.
- Oversubscription leads to lotteries.
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