How to apply for IPO under HNI category

To apply for an IPO under the HNI category, select the NII or HNI option and submit a bid exceeding ₹2 lakh. The application amount remains blocked through ASBA until the allotment process is completed.

• HNI applications must be worth more than ₹2 lakh.
• Small NII applications are above ₹2 lakh and up to ₹10 lakh.
• Big NII applications are worth more than ₹10 lakh.
• Eligible individual applicants can use UPI for applications of up to ₹5 lakh per transaction.
• Applications above ₹5 lakh must be submitted through a supported bank using ASBA.
• HNI applicants must enter a specific bid price and cannot select the cut-off option.
• The application amount remains blocked and is debited only for the shares allotted.

Investors can apply for an IPO under the HNI category through their preferred investment platform or a supported bank. The exact names of the tabs and options may differ across platforms, but the overall application process remains largely the same.

HNIs apply under the non-institutional investor, or NII, category. They must submit the application through the Application Supported by Blocked Amount, or ASBA, facility. Under this process, the application amount remains blocked in the investor’s bank account until the allotment process is completed.

The total IPO application value must be more than ₹2 lakh to qualify under the HNI category. If shares are allotted, the required amount is automatically debited from the blocked funds. Any remaining amount is released after the allotment process.

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

Step 1: Open your preferred investment platform

Sign in to the platform or bank through which you want to submit the IPO application. You must have an active demat account, trading account, and linked bank account before starting the process.

If you do not have the required account, complete the account opening and verification process first. The IPO application cannot be completed without valid demat and bank account details.

Step 2: Visit the IPO section

Look for the IPO section on the main screen or the investment menu. Most platforms divide IPOs into categories such as upcoming IPOs, open IPOs, recently closed IPOs, and recently listed IPOs.

The names of these sections may differ across platforms. However, you should be able to view all IPOs that are currently open for subscription.

Step 3: Select the IPO

Browse the available IPOs and select the issue you want to apply for. Review the company details, price band, lot size, issue dates, and other information before proceeding.

Click on the ‘Apply’ button after selecting the IPO. This will open the bidding and investor category section.

Step 4: Choose the HNI category

Select the HNI, NII, non-retail, or non-institutional investor category from the available options. Some platforms may display the option as ‘Apply as High Net Worth Individual’.

Make sure you select the correct category before entering the bid. Choosing the retail category may result in the application being treated differently.

Step 5: Enter the number of lots and the bid price

Select the number of lots you want to apply for. The total value of the application must be more than ₹2 lakh to qualify under the HNI category.

You must also enter a specific bid price within the IPO price band. Check the total application amount before proceeding, as it depends on the number of shares and the bid price selected.

Step 6: Review the bid details

HNI investors generally cannot select the cut-off price option. Therefore, you must enter a specific price within the declared price band.

The block mandate is created based on the total value of the bid. The amount remains blocked in your bank account until the allotment process is completed.

Step 7: Confirm the bank and demat account details

Review the bank account, PAN, demat account number, investor category, bid price, and number of lots. All details must match the records linked to your account.

Incorrect or mismatched information may result in the rejection of the IPO application. Check every field carefully before submitting the request.

Step 8: Enter the UPI ID

Enter your valid UPI ID if the platform allows you to complete the application through UPI. The UPI ID should be linked to your own bank account.

After entering the UPI ID, click on the ‘Continue’ or ‘Submit’ button. Applications that exceed the permitted UPI limit may need to be submitted directly through a supported bank using ASBA.

Step 9: Approve the UPI mandate

A mandate request will be sent to the selected UPI application after the IPO bid is submitted. Open the UPI application and review the blocked amount and other details.

Approve the mandate within the prescribed deadline. Delayed or incomplete approval may cause the IPO application to be rejected.

Step 10: Complete the application

Once the mandate is approved, the application amount will be blocked in your bank account. The money will remain in the account but cannot be used until the allotment process is completed.

If shares are allotted, the corresponding amount will be debited automatically. If you receive a partial allotment, only the required amount will be debited, while the balance will be released. If no shares are allotted, the entire blocked amount will be unblocked.

Not everyone qualifies for the HNI category — it is specifically for investors applying for IPO shares worth more than ₹2 lakh in a single application. In the IPO world, these investors are officially called Non-Institutional Investors (NIIs).

So who typically falls in this bucket?

• Individual investors bidding for more than ₹2 lakh worth of shares
• Hindu Undivided Families (HUFs)
• Companies, trusts, and societies investing in IPOs
• NRIs applying above the ₹2 lakh threshold

Here is a simple way to think about it. If the IPO price band is ₹100 to ₹110 per share and one lot has 14 shares — a retail investor can apply for up to 13 lots (roughly ₹2 lakh). The moment you apply for 14 lots or more, you automatically move into the HNI category.

One important thing to note — HNI applicants cannot use the UPI payment method. Applications must be submitted through the ASBA (Application Supported by Blocked Amount) process via a bank account or broker. The funds are blocked in your account until allotment is completed.

This is where things get a little different from the retail category — and understanding this can save you from surprises.

In the retail category, if an IPO is oversubscribed, allotment is done through a draw of lots — meaning even a small applicant has a fair chance of getting at least one lot. The HNI category does not work this way.

In the HNI category, allotment is done on a proportionate basis. This means the shares available for HNIs are divided among all applicants in proportion to the number of shares they applied for.

Every IPO in India is divided into three investor categories — Retail Individual Investors (RII), Non-Institutional Investors (HNI/NII), and Qualified Institutional Buyers (QIB). Each category has different rules, reservation quotas, and allotment methods.

Here is how they compare:

The biggest difference between retail and HNI is the allotment method. In retail, even a small applicant has a fair shot at getting one lot through the draw of lots. In the HNI category, bigger applications have a natural advantage since allotment is proportionate.

QIBs — mutual funds, banks, and foreign institutional investors — get the largest reservation at 50% of the issue size. They also go through a more institutional process and are evaluated differently by the company and its merchant banker.

For an investor sitting between retail and institutional — the HNI category offers larger allocation potential, but also requires higher capital commitment and carries the risk of receiving a much smaller allotment than applied for in heavily oversubscribed IPOs.

Applying for an IPO under the HNI category requires an investment of more than ₹2 lakh through the NII category. Before submitting your application, review the company’s financial details, issue price, risks, and funding requirements. Also, check the bid price, lot size, PAN, demat account, and payment details carefully. Since allotment is not guaranteed, the application should match your financial goals, available funds, and risk tolerance.