Hanumant Dhokle / Monday, February 22, 2021 / Categories: Learning, Fundamental, CSMER, Primary Markets : IPO 3.4 Investor Category In IPO IPO & INVESTOR CATEGORY Qualified Institutional Bidders (QIBs): These are domestic and foreign institutions (registered with the SEBI) which are eligible to apply for public offers. These institutions normally apply for very large amounts. These include scheduled commercial banks, mutual funds, foreign institutional investors (FII) registered with SEBI, venture capital funds registered with SEBI, insurance companies registered with the Insurance Regulatory and Development Authority (IRDA), provident funds and pension funds with a minimum corpus of Rs 25 crore. Retail Investors: These are investors who invest up to a maximum of Rs 2,00,000. Non-Institutional Investors: These are investors who are neither in the QIB category nor in the retail investors’ category. Therefore, high net worth individuals (HNI) fall into this category. SEBI issues guidelines which specify the percentage of the total securities offered for each category of investors from time to time. Currently, in any IPO, the allocation is usually as under: QIB - 50% HNI - 15% Retail - 35% Previous Article Markets sink; metal stocks buck weak trend as iron-ore prices in global markets surges to almost 10-year highs Next Article Torrent Power emerges as highest bidder for privatisation of power distribution company; stock hits 52-week high Print 1178 Rate this article: 4.2 Tags: CSMER Chapter 3 Please login or register to post comments.