How To Apply for IPO Under HNI Category?

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How to apply for IPO under HNI category?

If you’re a High Net-Worth Individual (HNI) looking to invest in an Initial Public Offering (IPO), it’s essential to understand the application process and requirements. HNIs have access to a dedicated 15% reservation of shares, providing a higher chance of securing allocations compared to retail investors.

Who Qualifies as an HNI?

In India, an HNI is someone who invests a minimum of ₹2,00,000 in an IPO. This category includes individuals, Hindu Undivided Families (HUFs), Non-Resident Indians (NRIs), foreign portfolio investors (FPIs), trusts, and companies. By investing larger sums, HNIs have the opportunity for higher rewards if the stock performs well post-IPO.

Steps to Apply for an IPO as an HNI

  1. Login to Your Angel One Account: Access your account via web or mobile app.
  2. Select the IPO: Choose the IPO you wish to apply for.
  3. Choose HNI Category: Ensure you select the HNI investor option.
  4. Enter Bid Details: Specify the number of lots and bid price.
  5. Payment: For investments under ₹5,00,000, pay via UPI. For larger amounts, use ASBA.
  6. Submit Application: Review and confirm your application.

Key Considerations

  • Investment Requirement: A minimum of ₹2,00,000 is required for HNI applicants.
  • No Discounts: HNIs don’t receive discounts on the issue price.
  • Oversubscription: Allotment is based on a lottery if the IPO is oversubscribed.

Conclusion

Investing in an IPO as an HNI offers unique opportunities, but it requires thorough research, strategic planning, and awareness of the process. By following these steps, you can improve your chances of securing shares in a highly competitive IPO market.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.