Retail Individual Investor (RII) HUFs, and resident Indian individuals who register for less than Rs 2 lakh in an IPO fall under the RII group.
A minimum of 35% of the Amount is set aside for the RII group.
The RII group is open to NRIs and HUFs who are applying for an IPO with less than Rs 2,00,000.
Category RII permits bids at the cutoff price
Non-institutional bidders (NII) The NII group is guaranteed a minimum of 15% of the Amount.
An HNI comes into this group if they apply for more than Rs 2 lakh in an IPO.
Once an offer has been submitted, non-institutional buyers cannot take it back. The offer amount could be changed by them.
At the cut-off price, NIIs are ineligible to offer.
No SEBI registration is required for NII.
Qualified Institutional Bidders (QIB's) The QIB category accepts applications from public financial organisations, private banks, mutual funds, and foreign portfolio investors, among others. Institutions must be registered with SEBI in order to submit under this group.
Reserved for QIB's Allotment Base - Proportionate is 50% of the Offer Quantity.
The majority of QIBs represent modest investors who use mutual funds, ULIP plans from insurance firms, and pension plans to make investments.
According to SEBI regulations, QIBs are not permitted to cancel their offers after the end of the IPOs.
QIBs are not permitted to submit bids at the cutoff price.
Anchor Investor A qualified institutional buyer (QIB) who submits a book-building application for a valuation of at least Rs 10 crores is referred to as a cornerstone investor in a public offering.
Up to 60% of the QIB Category can be allocated to Anchor Investors;
Anchor Investor Offer Price is decided separately.
Anchor investors has different Anchor Investor Bid/Offer Period.
The minimum application size for each anchor investor should be Rs 10 crores. No merchant banker, promoter or their relatives can apply for shares under the anchor investor category. In offers of size less than Rs 250 crores, there can be a maximum of 15 anchor investors, but in those over Rs 250 crores, SEBI recently removed the cap on the number of anchor investors.
Anchor investor's are not eligible to bid at cut-off price.