IPOs

What is QIB, NII and RII?

Also called: Qualified institutional buyer, Non-institutional investor, Retail individual investor, HNI

Hinglish mein padhein: IPO mein QIB, NII aur RII kya hote hain?

IPO shares are split into categories: QIBs (institutions), NIIs or HNIs (individuals and firms bidding above ₹2 lakh) and RIIs (retail, up to ₹2 lakh).

In a typical profitable-company book-built issue, up to 50% goes to QIBs, at least 15% to NIIs and at least 35% to retail.

Anchor investors — large institutions — can be allotted part of the QIB portion a day before the issue opens.

Related terms

Anchor investorAnchor investors are large institutions that commit to buy IPO shares a day before the issue opens to the public.
IPO subscriptionSubscription shows how many times the shares on offer have been bid for, by category — QIB, NII and retail.
IPO allotmentAllotment decides who gets shares in an IPO. When retail demand exceeds supply, lots are allotted by computerised lottery.