If you are ready to move beyond the small Retail tickets and play in the big leagues of the stock market, you are looking at the HNI (High Net-worth Individual) category. Technically called the NII (Non-Institutional Investor) category, this is where serious investors put their capital to work.

Applying as an HNI is not just about having more money; it's about following a completely different set of rules. In 2026, the HNI category is the sweet spot for many because while it requires a minimum of ₹2 Lakhs, it often has lower oversubscription levels than the Retail category, potentially giving you a better chance at a larger allotment. However, unlike Retail, there are no second chances. A small mistake in an HNI bid can lead to an instant rejection with no way to withdraw.

The HNI Buckets in 2026

In 2026, the HNI category is split into two distinct sub-categories. You don't need to choose these; the system automatically places you based on your bid amount:

Small HNI (sNII): For applications between ₹2 Lakhs and ₹10 Lakhs. One-third of the total NII quota is reserved for this group.
Big HNI (bNII): For applications above ₹10 Lakhs. Two-thirds of the total NII quota is reserved for this group.

Step-by-Step Application Process (Net Banking/ASBA)

For HNI applications, Net Banking (ASBA) is the most stable and recommended method. While UPI works up to ₹5 Lakhs, most HNIs prefer the direct bank route for reliability.

Step 1: Calculate Your Lots

You cannot simply type ₹2,10,000. You must calculate the exact number of shares.

Formula: Total Amount = Number of Lots x Shares per lot x Bid Price.
Ensure the total value is strictly above ₹2,00,000. If it is exactly ₹2,00,000, you are still in the Retail category. Aim for at least ₹2,01,000 to be safe.

Step 3: Select the NII or HNI Category

When the application form opens, look for the Investor Category dropdown. Select Non-Institutional or HNI. If you select Retail by mistake but bid for ₹3 Lakhs, your application will be rejected.

Step 4: Enter Your Manual Bid

Crucial Rule: You cannot select Cut-off Price. You must manually enter the price.

To ensure you are eligible for allotment, always enter the Cap Price (the highest price in the band). If the price band is ₹500–₹525, enter ₹525.

Step 5: Final Review & Block

Enter your Demat (DP ID & Client ID) and PAN details. Review the total amount to be blocked and click Submit. You will receive an OTP. Once entered, the funds will be Reserved in your account.

The Gold Rules of HNI Bidding (2026)

Applying as an HNI comes with Pro rules that you must respect:

No Withdrawal: Unlike Retail investors, once you place an HNI bid, you cannot cancel or withdraw it. You can only modify it to increase the price or quantity.
The 4:00 PM Deadline: Most brokers and banks stop accepting HNI applications at 4:00 PM on the final day, whereas Retail might go until 5:00 PM. Always finish your HNI bid by 1:00 PM to be safe.
Allotment Logic: In 2026, the sNII category follows a lottery (minimum allotment of ₹2 Lakhs worth of shares). The bNII category follows a proportional allotment (you get a percentage of your bid).

Comparison: Retail vs. HNI Application

Feature

Retail (RII)

HNI (NII)

Minimum Amount

₹14,000 – ₹15,000

₹2,00,001

Max Amount

₹2,00,000

No Upper Limit

Bidding Price

Cut-off Price allowed

Fixed/Manual Price only

Withdrawal

Can cancel anytime

Strictly NO cancellation

Modification

Can increase or decrease

Only INCREASE allowed

Frequently Asked Questions (FAQs)

Can I use UPI for an HNI application?

Yes, but only for applications up to ₹5,00,000. For any amount above ₹5 Lakhs (bHNI), you must use the ASBA facility through your Net Banking.

What happens if I bid at the Floor Price as an HNI?

If the final Cut-off is higher than your bid, you get zero shares. In 99% of successful IPOs, the Cut-off is the Cap Price. Always bid at the Cap Price.

No. Retail and Employees often get discounts (e.g., ₹20 off), but HNIs almost always have to pay the full price.

If I apply for ₹15 Lakhs, is allotment guaranteed?

No. If the bHNI portion is oversubscribed 100x, you will only get a tiny fraction of what you asked for. In extreme cases, even HNIs might face a lottery.

Is interest charged on the blocked ₹2 Lakhs?

No. You are using your own money. In fact, you earn interest from your bank while the money is blocked, as it never leaves your savings account.

What is IPO Funding for HNIs?

Many HNIs borrow money from NBFCs to apply for crores worth of shares. They pay interest for 7 days, hoping the Listing Gain will cover the interest cost and give a profit.

Can an NRI apply in the HNI category?

Yes. NRIs can apply under the NII category for amounts above ₹2 Lakhs using their NRE/NRO accounts.

Why is my HNI application showing Pending ?

This is common on the last day of the IPO. The exchange takes time to validate large bids. As long as you have the Application Number and the funds are blocked, you are safe.

Can I apply for 14 lots in Retail to make it ₹2.1 Lakhs?

If your total value crosses ₹2,00,000, the broker's system will automatically shift your application to the Small HNI (sNII) category.

What is the biggest risk for an HNI?

Market Volatility. Since an HNI invests a large amount, a Discount Listing (price falling below IPO price) can lead to a significant loss of lakhs of rupees in minutes.

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How to apply for IPO under HNI