Three categories of IPO, or initial public offer, exist in India: QIB, HNI and RII. Learn how to check your IPO allotment status here.
IPO applications fall into several types: institutional or qualified buyers (QIB); noninstitutional investors (NII) and high net-worth investors (HNI); or retail institutional investors (RII). IPO shares are divided with a fixed allocation for each category. For example, the Apollo Microsystems Ltd. issue structure was: QIB equals 50 percent; NII equals 15 percent; and RII equals 35 percent. The issue structure can change for each IPO, but the company must specify the allocation in the IPO details. Merchant bankers decide the IPO shares allotment for QIBs. Shares get allotted proportionately to the QIBs in the case of oversubscription.
IPO Share Allotment to RII
Retail investors may apply with a smaller worth less than two lakhs for the IPO allocation. If the QIB applied for 10 lakh shares, for example, and the IPO got oversubscribed five times, it will get only two lakh shares. In the Apollo Microsystems example, the issue price is Rs 270-275 and the minimum order was Rs 50. The host calculates the total number in demand.
IPO Share Allotment to HNI
This group includes people who invest more than two lakhs in an IPO. HNIs are allotted shares proportionately in the case of oversubscription. Financial institutions often fund HNIs to invest in IPOs.
ApplyIPO.com and UpcomingIPOCalendar.com
The website ApplyIPO.com publishes current IPO news, Grey Market Premium (GMP), allotment, listing and status at places such as Sandhar Technologies, Karda Construction, Grameen and Mishra Dhatu Nigam Ltd. Another place to check IPO allotment status is the website UpcomingIPOCalendar.com, which gives the IPO allotment status for companies such as Astron Paper, Ushanti Colour Chem Ltd., HDFC Life, TCNS Clothing Co. Ltd. and MSTC Ltd. Both sites require you to provide your PAN and application numbers.
The website ipoground.com gives details on upcoming IPOs and recently covered IPOs issued by DRS Dilip Roadlines Ltd., MSTC Ltd., and Embassy Office Parks. This site gives the address, phone number and other contact information for the company making the IPO as well as the opening and closing dates of the IPO. You can find the IPO size, face value, price band and market lot in addition to where it is listed, how many shares are in the minimum lot size and who is leading the IPO. For example, the Embassy Office Parks IPO managers are Axis Capital Ltd., J.P. Morgan India Private Ltd., Morgan Stanley India Private Ltd. and Kotak Mahindra Capital Company.