In an IPO, Retail individual investors are individuals who can buy and sell shares of the company through the IPO issue. As per SEBI guidelines, the minimum allocation under this category in an IPO should be 35% of the IPO size. Retail investors are generally small investors who invest less than Rs. 2 lakhs in an IPO.
Why are individual investors called retail?
These investors are called retail as they invest primarily for personal reasons and not on behalf of companies or other large institutions.
