• IPO

Reservation in IPOs

Updated on March 7, 2023

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Every IPO has certain eligible investors and certain permissible limits within which they can subscribe to shares for investment.

Eligible investors in an IPO

Reservation in IPO – As per SEBI rules, the reservation for investors in a compulsory book built IPO is given below.

QIB category investors – 50% of the net public offer
NII category investors – 15% of the net public offer
RII category investors – 35% of the net public offer

The reservation of eligible investors in case of voluntary book built IPO is given below

QIB category investors – 75% of the net public offer
NII category investors – 15% of the net public offer
RII category investors – 10% of the net public offer

The reservation for eligible investors in case of fixed price IPO is given below.

RII category investors – 50% of the net public offer
Balance offer to be made to individual applicants other than RII
Other investors including corporate bodies/ institutions irrespective of the number of securities applied for.