What is the HNI category in IPOs?

What is the HNI Category in IPO?

The HNI (High Net-worth Individual) category in IPOs is for investors who apply for shares with an application amount above ₹2 lakh. In India, HNI applications fall under the Non-Institutional Investor (NII) category.

HNI sub-categories

The HNI category is divided into two segments, and allotment is calculated separately for each:

  • sNII (Small HNI): ₹2 lakh to ₹10 lakh
  • bNII (Big HNI): Above ₹10 lakh

Since these segments are treated independently, allotment results can differ between sNII and bNII within the same IPO.

HNI IPO allotment process

  • A portion of every IPO is reserved for HNI investors
  • sNII and bNII have separate share reservations
  • Subscription and allotment are calculated independently for each segment

A minimum lot is the smallest number of shares you must apply for in an IPO.

Allotment can be lottery-based, pro-rata, or full, depending on demand.

Lottery-based allotment in the HNI category

Allotment becomes lottery-based when the number of applicants is higher than the available minimum lots in that segment.

In this case:

  • A lottery is conducted
  • Selected applicants usually receive one minimum lot

This is common in the sNII segment and can also occur in bNII for highly popular IPOs.

Example

  • Available lots: 10,000
  • Applicants: 50,000

Lottery is conducted, and only 10,000 applicants receive one lot each.

Pro-rata allotment in the HNI category

HNI allotment is pro-rata when there are enough shares to ensure every applicant gets at least one minimum lot.

In such cases:

  • Each applicant receives one lot
  • Remaining shares are allotted proportionately based on bid size

Full allotment in the HNI category

If the HNI category is not oversubscribed:

  • All valid applicants receive full allotment
  • No lottery or pro-rata adjustment is required

This is applied separately for both sNII and bNII segments.

Note

Being an HNI does not guarantee allotment. If applicants exceed the available minimum lots, allotment is done through a lottery.

    • Related Articles

    • How Can I Modify or Cancel My IPO Application in FYERS?

      FYERS allows you to modify or cancel IPO applications (Mainboard & SME) while the IPO bidding window is open. You can change the bid quantity, price, or even withdraw the application completely without any fees. However, once the subscription period ...

    • What’s the Difference Between an SME IPO and a General IPO?

      An IPO (Initial Public Offering) is when a company raises money by issuing shares to the public. In India, IPOs are categorised into two broad types: SME IPOs (for small and medium-sized enterprises) and mainboard IPOs (for larger, established ...

    • Why Am I Not Getting an IPO Allotment After Applying Through FYERS?

      Not receiving an IPO allotment after applying through FYERS usually occurs due to factors outside the platform’s control. The allotment process is managed by the registrar of the issue as per SEBI regulations and depends on demand and allocation ...

    • Quick Start Guide for IPO on FYERS

      You can apply for IPOs on FYERS using UPI from both the FYERS App and Web. The process has been simplified and is fully covered in our Quick Start Guide (QSG) videos. On FYERS App On FYERS Web <br> Ensure your UPI ID is valid ...

    • How Do I View and Track My IPO Applications in FYERS?

      You can apply for IPOs and track their status directly within the FYERS platform, both on the web and mobile app. FYERS updates IPO application statuses based on inputs received from the IPO registrar (e.g., Link Intime, KFintech). On FYERS App Tap ...