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Non-Institutional Bidder Category of an IPO

All the individual investors, companies, NRI’s, and trusts who bid on IPO for more than one lakhs are called Non-institutional bidders. They unlike RII’s are not required to register with SEBI.

These bidders have a reserved allocation of 15 percent of shares out of the entire issue size in the Book Build IPOs. there are few pros and cons for all the retail investors to apply under the non-institutional category of any IPO. The main pros are that there is no limit on the application amount.

These investors can bid for any amount which is more that Rs 100’000. The main con is that only a small percentage that is 15 percent of the total shares are reserved for Non-Institutional Investors category whereas the Retail Individual Investors category has a larger portion that is 35 percent of total shares available for allocation. Simply said, if the non-institutional category investors are oversubscribed heavily, there are very few chances of getting an allotment.

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