What are the advantages and disadvantages to applying for NII quota?
NIIs may apply for more than Rs 2. lakhs in an IPO.
Retail investors are not eligible to receive the price discount for NIIs.
NIIs do not need to register with SEBI.
When compared to RII (35%), the reserved allocation (15%) is lower. This reduces the chance of allocation in cases of oversubscription.
NIIs may withdraw from an IPO prior to the date of allotment.
15% is the reserved allocation for NIIs, which is the lowest of the three investor categories in an IPO. QIB holds 50%, while RIIs hold 35%. In an oversubscribed IPO, there are lower chances of allocation. Trusts, corporate bodies, and many other institutions also fall under the NII category. It is a highly competitive pool for allotment.