Here are the 4 broad categories of investors in an :
Retail individual investor (RII): These are Indian resident individuals, NRIs and HUFs who participate in an IPO with less than ₹2 lakhs. If oversubscribed, the allotment is on a lottery basis and applicants will receive a maximum of one lot.
High Net-worth Individual (HNI): These are Indian resident individuals, NRIs, HUFs, companies, corporations, academic institutions, societies and trusts. Investors who place bids for shares worth ₹2 lakhs to 10 lakhs are Small HNIs. Those who place bids for shares worth more than ₹10 lakhs are Big HNIs. If the IPO is oversubscribed for small HNIs, the allocation will be on a lottery basis. For big HNIs, each investor will get allotment proportionately, subject to availability.
Qualified Institutional Buyer (QIB): QIB is registered with SEBI to invest in . Most QIBs invest in large amounts and represent investors who invest through mutual funds, ULIP schemes of insurance companies and pension schemes.
Anchor Investors: Anchor investors are financial institutions that are allocated shares at a fixed price before the IPO is opened to the public. These also include public financial institutions, banks, mutual funds, and foreign portfolio investors who invest money on behalf of their clients.
| Retail | HNI | |
| Limits | Up to ₹2 lakh | Above ₹2 lakh |
| Lock-in Period | NA | NA |
| Cancellation of Bid | Yes, while the issue is open | No. |
| Modification of Bid | Yes, while the issue is open | Yes, but can only upside the bid |
| Apply at the Cut-off price | Yes | No |
