• Qualified Institutional Buyers (QIB)- Qualified Institutional Buyers (QIBs) are
typically large, financially sophisticated investors, such as the mutual funds,
insurance companies, pension funds, and hedge funds, who are considered to have
the expertise and resources to evaluate investment opportunities. QIBs are
required to meet certain financial criteria set by the Securities and Exchange
Board of India (SEBI) to participate in an Initial Public offering IPO, and they are allowed to bid for
shares at a price lower than the price at which shares are offered to retail
investors.
• Non-Institutional Investors (NII) - Non-Institutional Investors (NIIs), on the
other hand, are typically individual investors, High Net Worth Individuals
(HNIs), or corporate bodies who do not meet the financial criteria to be
classified as QIBs. They are allowed to participate in an Initial Public offering IPO at the same price
as the retail investors.
NII category has two subcategories:
1. sNII - "sNII" stands for "Small Non-Institutional
Investor." This subcategory includes investors who have bid for shares
worth between ₹2 lakhs and ₹10 lakhs in an Initial Public offering IPO.
2. bNII - "bNII" stands for the "Big Non-Institutional
Investor." This subcategory includes investors who have bid for shares
worth more than ₹10 lakhs in an Initial Public Offering IPO.
• Retail Individual Investors (RII) - Retail Individual Investors (RIIs) are
individual investors who apply for shares worth up to ₹2 lakhs in an Initial Public offering IPO,
aimed at encouraging retail participation in the Initial Public offering IPO process.
• Employee (EMP)- The Employee (EMP) category in an Initial Public Offering the IPO is reserved
for the employees, directors, & business associates of the issuer company,
and the allocation of shares to this category is determined by the issuer
company and the lead manager of the Initial Public Offering IPO.
• Others- The category of eligible shareholders or other and investors who have the reserved quota in the Initial Public Offering IPO.
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