IPO Application Under HNI Category

Companies launch IPOs (initial public offerings) in the market to raise capital for business growth and expansion. Investors are also enabled to invest in high-quality assets by investing in IPOs. With so many businesses raising IPOs, it has become a popular investment method among investors.

HNIs, or high-net-worth individuals, fall under the NII or non-institutional investor category. They can apply for an IPO; however, the process differs slightly. In the sections below, we shall discuss the steps for applying for an IPO under the HNI category.

Investors can apply for an IPO in the HNI category using their preferred platform and application by following the steps listed below. HNIs who wish to invest need to fill out the 'application supporting the blocked amount' form (ASBA). Additionally, it is important to note that they must invest a minimum of Rs. 2 lakh. Once they are shortlisted for allotment, the blocked value will be debited from the account.

Here is how you can apply for an IPO under the HNI category:

• Step 1: Open your application or the platform through which you wish to apply for the IPO under the HNI category. If you do not have an account, create one to start the process.
• Step 2: Usually, there is an IPO tab on the main screen that presents all the options that an investor can explore. This includes upcoming IPOs, recently closed, open now, and recently listed IPOs. While the terms can differ slightly, the options should remain the same.
• Step 3: Now, investors can browse and select the IPO they wish to subscribe to. Click on the 'Apply' button to proceed.
• Step 4: To apply for an IPO in the HNI category, select the option 'Apply as High Networth Individual' from the drop-down menu of the app or platform.
• Step 5: You will now see two options on the IPO page—the bid price and the amount of shares you want to bid. Simply select the number of lots and bidding value to finalise the bid. It is important to note that for HNI investors, the minimum bidding value should be Rs. 2 lakhs or more.
• Step 6: HNI investors are not allowed to select the cut-off value. Hence, a block mandate is created in the account at the highest bid value. Investors will be able to block the value of the IPO application till the final allotment takes place.
• Step 7: Once the shares have been successfully assigned to you, the debit will happen automatically from the account.
• Step 8: HNI investors can enter their UPI IDs and click on the 'Continue' tab to proceed.
• Step 9: Within 24 hours, you will get a mandate request on the chosen UPI app for final approval.
• Step 10: To complete the process and apply for the IPO under the HNI category, investors can approve the payment request on the UPI app.

When considering an IPO as an HNI investor, it is important to thoroughly evaluate the company details, market demand, and available funds, especially considering that the investment value is very high for this category of investors. It is also crucial to understand your risk tolerance and investment goals.

Seeking advice from a financial advisor can provide personalised guidance and help you align your investments with the financial strategy. This approach can empower HNI investors to make well-informed decisions and maximise the potential benefits of their IPO investments.

• Companies launch an IPO to raise funds from the public for business growth and expansion.
• High-net-worth individuals, or HNIs, are investors who can apply for an IPO by filling out the ASBA form and selecting the applicable options as per their category on the platform.
• HNI investors must invest a minimum of Rs. 2 lakhs in an IPO.