1. Who are QIB, NII, and Retail Investors?
SEBI reserves specific quotas in every public issue: Qualified Institutional Buyers (minimum 50% in mainboard), Non-Institutional Investors / HNIs (15%), and Retail Individual Investors (35%).
Retail investors apply for amounts up to ₹2,00,000, while sHNI (Small HNI) bids range from ₹2 Lakh to ₹10 Lakh, and bHNI (Big HNI) applies above ₹10 Lakh.
2. Why QIB Subscriptions Spike on Day 3
Institutional investors such as mutual funds, foreign portfolio investors (FPIs), and insurance conglomerates strategically submit bids on the final afternoon (Day 3) between 2:00 PM and 4:30 PM.
Waiting until the last day allows institutional desks to assess retail sentiment, avoid interest loss on committed funds, and observe foreign anchor commitments.
3. How HNI Bidding Influences Breakeven Points
Because many large HNIs borrow short-term capital via NBFC funding to bid hundreds of lots, they require a minimum GMP just to cover their 5-to-7 day financing interest costs.