Institutional investors, such as mutual funds, pension funds, insurance firms, and others, are IPO investors. They could also be high-net-worth retail investors with ties to one of the underwriters or a brokerage company.

The highest amount of money that can be invested is Rs. 2 lakh. The RII category is guaranteed a minimum of 35% of the IPO. This group of investors has the option to bid at the cut-off price.

Before the IPO, pre-IPO equities are offered as private placements. Because they are sold in huge blocks before the IPO, the average retail investor may be unable to purchase pre-IPO stock.

This is the most common rationale for filing an initial public offering (IPO) application. Both resident and non-resident Indians, as well as HUFs, are included. In this category, the maximum amount that can be invested is Rs. 2 lakhs.

The allotment process is entirely dependent on how the IPO received investor replies. If the IPO is undersubscribed, investors may be assigned to all of the lots for which they applied. If the initial public offering (IPO) is oversubscribed, a computerised procedure is used to distribute shares to retail investors.

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