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Article / GuideIPO Allotment

IPO Allotment Process to Retail, HNIs, and QIBs: A complete guide

Last updated August 22, 2026

This IPO News guide/article covers “IPO Allotment Process to Retail, HNIs, and QIBs: A complete guide”. The page is organized around what is ipo allotment?, ipo allotment rules & regulations, ipo basis of allotment, ipo allotment to retail investors, 1. under-subscription. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

  • What is IPO Allotment?
  • IPO Allotment Rules & Regulations
  • IPO Basis of Allotment
  • IPO Allotment to Retail Investors
  • 1. Under-subscription
  • 2. Over-subscription
  • IPO allotment to Non-institutional Investors (NIIs)
  • HNI IPO Allotment Method and Rules
  • IPO Allotment to Qualified Institutional Investors (QIIs)
  • IPO Allotment to Anchor Investors
  • Zerodha Trade@20
  • Compare Stock Brokers Side-by-Side

Key Facts

  • India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
  • Let us understand what IPO allotment, IPO allotment method, and rules on how the process of IPO allotment works for IPO applicants in different categories i.e. retail investors, QIBs, and NIIs.
  • An IPO offer that is more than 90% subscribed but does not receive an oversubscription will be allotted to all those who applied for the IPO.
  • The IPO allotment process varies depending on the investor category – retail, QIB, NII, and anchor investors.
  • If a public issue is undersubscribed in one category except QIBs, it may be offset by oversubscription in another category.
  • In case of allotment of shares to retail investors, the maximum number of bidders for allotment is first calculated by dividing the number of shares offered to retail investors by the number of shares in a lot.
  • Now there are different scenarios for the allocation to retail investors:
  • Suppose, in the above example, a total of 9,000 applications were received for 4,50,000 shares, all the bidders will be allotted with shares they had applied for.
  • In case of over-subscription, allotment gets done on a lottery or pro-rata basis based on the total number of IPO applications received from retail investors.
  • On the other side, if the number of IPO bids from RII is less than the maximum allotees, every bidder will get 1 lot and the remaining shares will be allotted on a pro-rata or proportionate basis.
  • Non-institutional investors are those who make an IPO bid of more than Rs 2 lakhs. Allotment of shares in the NII category is done on a pro-rata basis or on a lottery system.
  • NIIs are further divided into two categories: small NIIs and large NIIs, where small NIIs subscribe to the IPO for a bid amount of Rs 2 lakhs to Rs 10 lakhs, while large NIIs bid not less than Rs 10 lakhs.
  • In the above example, investors who have applied for 14 to 67 lots are small NIIs, while all NIIs applying for 68 or more lots belong to the large NII category.
  • In each public issue, 15% of the total shares are reserved for the NII category, with one-third or 5% reserved for small HNIs and two-thirds or 10% for large HNIs.
  • The allotment of shares in the NII category is based on the proportionate basis or lottery system.
  • If a public issue in the HNI category is not subscribed for as many shares as are offered, all bidders in the NII category will receive the shares they have applied for.
  • Guaranteed minimum allotment to all NII applicants whose bid or application is equal to or greater than the number of times an IPO is oversubscribed.
  • After the minimum allotment of lots to small and large NIIs, the remaining shares will be allotted on a pro-rata basis.
  • In case of large oversubscription in the NII category, allotment is done through lottery.
  • The HNI bids will be divided or ranked into SHNI and BNII based on the number of lots applied for. The allocation quotas are roughly the same for investors in these two categories.
  • IPO bids cannot be submitted in the NII category at the cut-off price.
  • HNI or NII bidders cannot withdraw or cancel their bids.
  • There is no lock-in period for small and large NII investors in an IPO.
  • There is a 30-day lock-in period applicable on anchor quota means anchor investors cannot sell shares before 30 days after allotment.
  • An IPO can have a minimum of 15 anchor investors in an IPO with an issue size below Rs 250 crore. However, an IPO above Rs 250 cr can have 25 anchor investors.
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