Hello ... as i checked NII category is over subscribe 330 Times means if i invest 330000 rupee then i got the share of 1000 rs. is i am right. then What is the benefit to apply in that category. What i know if we invest above 2 lac then our investment is in this category and despite of lottery draw share are divided equally depend upon demand.
I applied the max lot in HUDCO that is 3200 shares in retails category but i have more liquidity as well so requested you to please update is it benefit to invest in NII category. Thanks.....
See, lets take example of good IPO, where listing gain is almost sure, like Hudco Retail and NII subscription figures are such in these that there is no benefit if you are applying with 2-5 lac rs NII works for those who plays with NBFC money and that too in carores, just go through basis of allotment of any IPO, you will understand whole story
Since HUDCO had subscribed for 330x times in NII category, what you must have invested to get a single lot of 200 shares is equal to 200 (shares)* 330 (times) * 60 (Price) i.e. an amount equivalent to Rs. 39,60,000.
Assuming HUDCO listing at 85 (on the higher side), what you have gained is a mere Rs. 5000 for investing an amount of Rs. 39,60,000 which is a mere 0.12%.
My concern is same if suppose i would invest 3960000 which is not a small amount what i will 5000 i.e only. 12%... So can any plz tell me what the benefit to subscribe in NII category...really margin is very less..
understand this suppose profit on 3960000 is 5000 intrest cost for NII on 3960000 for 7 days (5% pa rate) - 3800 rs approx profit - 1200 rs per 3960000
similarly if the apply for 39,60,000,00 rs profit will be 120000
so ye bara game hota hai, NBFC ke paise par, and bara jua hai
lets see a NII bid in demart
3,913,000 shares applied received 14413 (this was biggest NII deal in demart)
Thanks GFN i got your point regarding NII.. Its not for me i usually earn 15% return on my investment so i will not invest in NII category.. I have one more point in retail how is lottery system works.. Is they give priority who bid max lots or same priority to all who bid one lot or max lot in retail category.. And if we applied max lot when the probability that we will get more then 2 lots.. Hope u got my point the basics fundas of allotment..
In retail section, you can get as many lot you applied, if retail portion is not full. but if it is full (1x) application wise allotment done, 1 lot per app if it is still over, than lottery
so practically applying more than 1 lot is of no use (if application wise subscription is more than 1 you can not get more than 1 lot)
most of the times ipo''s where you get more than 1 lot in retail category (as they are not fully subscribed) open in loss
but some exceptions occurs
like indigo
you got there whatever you applied, and it gave decent returns
1 lot or 16 lot u applied the chances are same.. since it is applied 5.75 times application wise u have chance of getting 1 lot in lottery of 5.75.. nothing more