IPO Allotment process for small nii

General
1

What is the process behind the allotment of an IPO in the small NII

2

The allotment process in the Small NII/HNI category (application size between 2 lakhs to 10 lakhs) is done on a draw of lots basis (lottery basis like the retail category). IPOs: Changes in HNI Allotment [Non-Institutional Investor (NII) category]

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3

If an IPO is oversubscribed in all categories and i apply in SNII category will i have more chances of allotment if my application amount is more than 9 lakh compared to chances if my application amount is just above 2 lakh?

4

Depends on IPO. For example take JSW Infrastructure there what you said happened where bHNI category had less oversubscrption with respect to alloted amount so yes if you had more than 9 lakhs chaces would be more than just above 2 lakhs.

But the funny thing is even retail (less than 2 lakhs) had a better chance than sHNI as retail had less oversubscrption with respect to alloted amount to them.

So the probability of getting allotted was in this order bHNI > Retail > sHNI.

You can calculate probability by seeing subscription status and allotted amount for each category.

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5

Thanks for reply. From more than 9 lakh I meant more than 9 lakh but less than 10 lakh, within SNII category only.

6

If IPO is oversubscribed like in case of JSW even if you put 9 Lakh bid only the basic 2 Lakh is considered when giving allotment. So basically even if you gave 9 Lakh bid only 2 Lakh is considered and so your chances of allotment don’t improve when you give 2 Lakh or 9 Lakh.

The method to improve allotment in this scenario is to apply using 4 demat accounts all linked to 4 different pan cards. So use your parents, relatives and friends demat account and make sure they apply using their bank account (transfer the money to them). This way say an IPO in sHNI category had a 1/4 probability and you apply using 4 different demat accounts according to probability you will get 1 allotment at least. Of course it’s probability and you may get 0 also or all 4 also depends on your luck. But at the very least the probability of getting allotment has increased as anyway if the IPO was oversubscribed only basic amount of 2 Lakh would be considered.