Northspread
Formula sheet/NISM Series XV: Research Analyst/Legal and Regulatory Environment
[ LEGAL AND REGULATORY ENVIRONMENT ]

SEBI Issue Allocation & Investor Limits

Retail Individual Investor(RII)Allocation:Minimum35%of Public Issue(Bids≤Rs2,00,000)\text{Retail Individual Investor} (RII) Allocation: Minimum 35\% \text{of Public Issue} (Bids \le Rs 2,00,000)
Qualified Institutional Buyers(QIB)Allocation:Maximum50%of Issue\text{Qualified Institutional Buyers} (QIB) Allocation: Maximum 50\% \text{of Issue}
Anchor Investor Portion:Up to60%of QIB Allocation(Min application:Rs10Crore)\text{Anchor Investor Portion}: \text{Up to} 60\% \text{of QIB Allocation} (\text{Min application}: Rs 10 Crore)
Private Placement(Sec42Companies Act):Maximum50persons per offer(excluding QIBs&ESOPs)\text{Private Placement} (Sec 42 \text{Companies Act}): Maximum 50 \text{persons per offer} (\text{excluding QIBs} \& ESOPs)
Variables

Ensures balanced retail access and institutional price discovery in book-built public issues.

Worked example
Book-Built IPO: RII, QIB, and NII Allocation Split

Kaveri Renewables Ltd launches a 100% book-built IPO to raise Rs 1,000 Crore, with the standard proportionate allocation (no promoter reservation). Compute the minimum allocation reserved for Retail Individual Investors, the maximum allocation available to Qualified Institutional Buyers, the maximum Anchor Investor carve-out within that QIB portion, and the resulting Non-Institutional Investor allocation.