When you look at an IPO subscription status, you see multiple categories like QIB, NII, bNII, sNII, RII, and Employee. Understanding what each means helps you gauge demand levels and estimate your allotment probability.
1. RII — Retail Individual Investors
| Who qualifies | Individuals applying for up to ₹2 lakh worth of shares |
| Quota (Mainboard) | 35% of total issue size |
| Quota (SME) | 35% of total issue size |
| Allotment method | Lottery system when oversubscribed |
| Min. application | 1 lot at cut-off price |
2. NII — Non-Institutional Investors (HNI)
NIIs are individuals or entities applying for more than ₹2 lakh worth of shares. They are further divided into two sub-categories since 2022:
- sNII (Small NII): Applications between ₹2 lakh and ₹10 lakh — gets 1/3rd of NII quota
- bNII (Big NII): Applications above ₹10 lakh — gets 2/3rd of NII quota
- Allotment is done proportionally (not by lottery) in NII category
3. QIB — Qualified Institutional Buyers
| Who qualifies | Mutual funds, FIIs, banks, insurance companies, AIFs |
| Quota (Mainboard) | 50% of total issue size |
| Allotment method | Proportional basis |
| Key feature | Half of QIB quota reserved for Anchor Investors |
What Does Oversubscription Mean for Allotment?
In the RII category, when the category is oversubscribed, allotment is done by lottery. Each applicant gets either 1 lot or nothing — the number of lots you apply for does NOT increase your probability once the category is oversubscribed. This is why applying for minimum lots is strategically smart for retail investors.
Strategy: For heavily oversubscribed IPOs, apply for minimum lots in the retail category. This maximises your application count-to-cost ratio. For NII category, apply for the maximum you can afford as allotment is proportional.