Retail vs HNI in an IPO: how they differ
The category you apply in follows from how much you bid. Up to ₹2 lakh is retail; above it is HNI. Each is subscribed and allotted separately, so their chances can be very different in the same IPO.
The differences
Bid size: retail up to ₹2 lakh. Small HNI above ₹2 lakh up to ₹10 lakh. Big HNI above ₹10 lakh.
Share of the issue: in a typical mainboard IPO, 35% for retail and 15% for HNI (NII), of which one third is small HNI and two thirds big HNI.
Cut-off price: retail can bid at the cut-off price. HNI must bid at a specific price.
Changing the bid: retail can lower or withdraw a bid before the issue closes. HNI cannot.
Payment: retail can use UPI. Bids above ₹5 lakh need net banking.
How allotment differs
If a category is oversubscribed, both retail and small HNI are decided by a draw: each winner gets the minimum bid size, which is one lot for retail and the smallest number of lots above ₹2 lakh for HNI. Big HNI follows the same approach with its own pool.
So the chance is about 1 in X for each, where X is that category's own subscription. The categories can differ a lot: it is common for HNI to be subscribed several times more than retail.
Reading the subscription
Compare the retail figure with the small HNI figure on the IPO's subscription page. A far higher HNI number means a lower chance per HNI application, for far more money blocked. A big gap the other way is rarer.
Remember that with one PAN you can apply as retail or HNI, not both.
Which is right for you
That depends on how much money you want to put up, and for how long, and on the subscription figures, not on a rule. Retail ties up less money and allows changes; HNI needs more and is final. This is general information, not advice on whether to apply.
Related guides
- What is the HNI category in an IPO?
- IPO categories explained: retail, HNI (NII) and QIB
- What is IPO subscription (times subscribed)?
More on subscription, allotment and refunds
- How IPO allotment works
- How to check IPO allotment status
- IPO money still blocked? What to do
- How to improve your chances of an IPO allotment
- Why IPO applications get rejected
- What happens when an IPO is undersubscribed
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Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.