Definition
Non-Institutional Investor (NII)
An NII, often called an HNI, is an investor who applies for more than ₹2 lakh worth of shares in an IPO and falls outside the retail and QIB categories.
In an Indian IPO, the non-institutional category is reserved at least 15% of the net offer. Since 2022 SEBI has split this into two buckets: one-third for applications between ₹2 lakh and ₹10 lakh, and two-thirds for applications above ₹10 lakh, each with its own proportionate allotment.
NIIs (high-net-worth individuals) often use IPO funding — short-term loans from NBFCs — to apply for very large amounts and chase listing gains. The category frequently sees the highest oversubscription multiples in hot issues.
Related terms
- Qualified Institutional Buyer (QIB)A QIB is a large, sophisticated institutional investor — such as a mutual fund, bank, insurer or FPI — that is allotted a dedicated portion of an IPO.
- Retail Individual Investor (RII)An RII is an individual investor applying for up to ₹2 lakh in an IPO, who gets a reserved quota and can bid at the cut-off price.
- HNI IPO FundingHNI (or NII) IPO funding is short-term borrowing used by high-net-worth applicants to bid for very large IPO amounts in pursuit of listing gains.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.