Have you ever wondered how seasoned investors and high net worth individuals (HNIs) participate in IPOs and get those bigger allotments? If you’re someone with a larger investment appetite and want to explore the HNI route for IPOs, you’re in the right place.

Applying under the HNI category in an IPO isn’t just about putting in a large sum—it requires strategy, timing, and a little bit of know-how. In this post, I’ll break it all down in simple terms. 

What Is an HNI Application in IPO?

HNI stands for High Net Worth Individual. In the context of an IPO (Initial Public Offering), HNIs are investors who apply for shares worth more than ₹2 lakh. These applications fall under the Non-Institutional Investors (NII) category.

The IPO is typically split into three main investor categories:

1. Retail Individual Investors (RII) – For investments up to ₹2 lakh
2. High Net Worth Individuals (HNI) – For investments above ₹2 lakh
3. Qualified Institutional Buyers (QIBs) – Includes mutual funds, banks, etc.

Advantages Of HNIs category:

• Bigger Allotments: Retail category often sees heavy oversubscription. Applying under HNI can improve your chances of getting a meaningful allocation, especially for strong IPOs.
• No Cap on Investment: Retail investors are limited to ₹2 lakh per IPO. HNIs can go much higher based on their appetite.
• Strategic Leverage: Many HNIs even use IPO funding (loan-based applications) to amplify their exposure.

That said, IPOs can be risky, and allotment is not guaranteed. So always apply with care.

Eligibility Criteria for HNI Category

The key requirement is that your application must exceed ₹2 lakh in value. You can apply via individual or HUF accounts.

• Have a demat account
• Have a valid PAN card
• Use UPI (for applications up to ₹5 lakh) or ASBA (for applications above ₹5 lakh)
• Have sufficient funds or sanctioned IPO funding

How to Apply for an IPO Under HNI Category

Here’s a clear step-by-step guide to help you through the process.

Step 1: Pick an IPO That Fits Your Strategy

• Company fundamentals
• Valuation and financials
• Grey market premium (GMP)
• Market sentiment and analyst reviews

Tip: Popular IPOs tend to be heavily oversubscribed in the HNI category, so weigh your options and entry amount carefully.

Step 2: Choose Your Application Mode (ASBA or UPI)

For HNI applications, there are mainly two methods:

1. ASBA (Application Supported by Blocked Amount) – Preferred for amounts above ₹5 lakh
2. UPI – For amounts up to ₹5 lakh (recently increased from ₹2 lakh)

ASBA is considered safer and more widely used for larger HNI applications. You can apply through your net banking account if your bank is registered as an SCSB (Self-Certified Syndicate Bank).

Step 3: Log in to Your Bank or Broker’s IPO Portal

If you're applying through ASBA:

• Log in to your net banking
• Look for ‘IPO’ or ‘ASBA Services’
• Select the IPO you want to apply for

If you’re applying through a broker:

• Use platforms like Zerodha, Angel One, Groww, or Upstox
• Go to the IPO section
• Choose the IPO and enter application details

Step 4: Fill in the Application Details

Here’s what you’ll need to enter:

• Category: Select “Non-Institutional” or “HNI”
• Bid Quantity: Based on the lot size of the IPO
• Price: Enter the cut-off price or your desired bid price
• Demat Account Number: Make sure it’s accurate
• PAN Number
• UPI ID (if applicable)

Let’s say the lot size is 15 shares and the price is ₹300. To apply as HNI, you’ll need to apply for at least 7 lots (₹3150 x 7 = ₹2,20,500). Round it up to play safe.

Step 5: Block the Funds

If you’re applying via ASBA, your bank will block the amount from your linked account until allotment. If you’re applying with UPI, you’ll receive a payment mandate to approve.

Note: Your funds stay in your account until the allotment is confirmed. If you don’t get any shares, the blocked amount gets released.

Step 6: Track the Subscription Status

During the IPO window (usually 3 days), you can track real-time subscription data on the NSE/BSE website. The HNI category typically sees a spike in applications on the final day.

Don’t panic if the numbers look high—just understand that allotment happens on a proportionate basis.

Step 7: Wait for the Allotment

After the IPO closes, it takes around a week to finalize allotments. You’ll receive an SMS or email if shares are allotted. You can also check status on:

• Registrar’s website (like Link Intime or KFin Technologies)
• BSE/NSE IPO allotment page

If allotted, shares will be credited to your demat account on the listing date. If not, your money will be unblocked automatically.

Tips to Improve HNI Allotment Chances :-

1. Apply on the final day, especially between 1–3 PM when the bid data is clearer
2. Choose cut-off price to stay competitive
3. Avoid odd quantities—stick to full lots
4. Use multiple demat accounts (under different PANs in family) if applicable

What About HNI IPO Funding?

Some investors use IPO funding from NBFCs or brokers to apply with large amounts. These loans are typically short-term (7–10 days) and come with interest charges.

Things to consider:

• You need to maintain margin money (usually 15–20%)
• Interest rates vary (usually 7–10% for big issues)
• Profits depend on GMP and listing performance

This strategy is high-risk, so use it only if you understand the mechanics and have exit discipline.

Final Thoughts

Applying for an IPO under the HNI category isn’t just about investing more money—it’s about understanding the rules, managing risk, and playing smart.

Yes, the chances of allotment may still depend on oversubscription and demand, but having clarity on the process and your objectives will always put you ahead.

If you're serious about IPO investing, keep refining your strategy, track market trends, and never invest blindly—regardless of the category.

So, the next time a promising IPO hits the market, and you’re eyeing that HNI slot, you’ll know exactly what to do.