Categories: IPO

Reservation in IPOs

Every IPO has certain eligible investors and certain permissible limits within which they can subscribe to shares for investment.

Eligible investors in an IPO

Reservation in IPO – As per SEBI rules, the reservation for investors in a compulsory book built IPO is given below.

QIB category investors – 50% of the net public offer
NII category investors – 15% of the net public offer
RII category investors – 35% of the net public offer

The reservation of eligible investors in case of voluntary book built IPO is given below

QIB category investors – 75% of the net public offer
NII category investors – 15% of the net public offer
RII category investors – 10% of the net public offer

The reservation for eligible investors in case of fixed price IPO is given below.

RII category investors – 50% of the net public offer
Balance offer to be made to individual applicants other than RII
Other investors including corporate bodies/ institutions irrespective of the number of securities applied for.

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