For investors seeking large profits, investing in Initial Public Offerings (IPOs) has always been a desirable option. Due to their significant financial holdings and particular financial needs, High Net Worth Individuals (HNIs) are vital to the investment markets. Learn about the HNI IPO allotment process and how to track IPO subscription status.

Who Is Eligible to Be a High Net Worth Person?

An investor who applies for more than two lakh rupees in an IPO is considered a High Net Worth Individual, or HNI. Ultra High Net Worth Individuals are those who make significantly larger investments. HNIs are classified as Non Institutional Investors in India. Their HNI IPO allotment is not determined by a lottery, unlike individual investors. Depending on the number of shares they apply for and the level of demand for the IPO, the allocation is based on proportional allocation.

IPO Categories You Must Understand

Three primary groups of investors are created when an organization announces an IPO.

Retail individual investors can invest up to two lakh rupees.

Non-institutional investors (HNIs) who invest over two lakh rupees.

Qualified institutional buyers, such as big financial institutions and mutual funds

Every group has a set number of shares reserved for it. HNIs compete for allotment within their own group.

How the HNI IPO Allotment Process Works

The non-institutional group includes HNIs. Rather than using a random draw, the HNI IPO allotment procedure uses a proportional strategy. Here's how it typically occurs.

The company announces the IPO, including the price range and issuance dates.

HNIs submit bids for the desired number of shares to apply.

The registrar verifies total subscriptions after the IPO finishes.

If the HNI category IPO is oversubscribed, shares will be allocated proportionally to the amount applied.

The registrar's website displays the final list of allotments.

Even a small oversubscription can affect how many shares HNIs ultimately receive, since they apply for large quantities.

How Should One Apply for an IPO as an HNI

Once you understand the procedures, applying as an HNI is simple. The majority of investors use the application supported by the blocked amount approach. It allows money to remain in your bank account until the allotment is completed.

Here's how to apply.

Open the IPO section of your broker or your bank's net banking site.

Enter the bid details after choosing the IPO you wish to invest in.

Your account remains banned until the necessary funds are allocated.

The sum is automatically deducted if you receive the shares.

If you receive no shares, the funds that were blocked are released.

Before applying, confirm that your trading and Demat accounts are properly linked and operational.

Documents You Need for IPO Application

Basic KYC documents are required, including

PAN Card

Evidence of identity, such as a passport or Aadhaar card

Demat Account Details

These documents enable your application to be processed smoothly and verify your eligibility.

Understanding IPO Subscription and Allotment

The subscription status indicates the number of times investors have submitted an IPO application. During the issue period, you can view this information on the websites of the NSE or BSE. A large subscription number indicates strong demand, which may lessen each investor's chances of receiving their entire allotment.

The registrar completes allotments and uploads results once the problem is resolved. Entering the following factors on the registrar's website will allow you to check the status of your allotment. 

PAN number

Application number

DP ID

This indicates whether your allowance was

Full

Partial

Nonexistent

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