Invest in IPOs under HNI, Policyholder and Employee categories via UPI3 min read
Are you an investor looking for investing bulk amounts in Initial Public Offerings (IPOs)? Want to invest more than retail limits in an IPO? We’ve got you covered! You can now apply for an IPO under the HNI category through Paytm Money.
What is the High Networth Individual (HNI) category?
HNI category allows investors to apply for more than Rs 2 lakh in an IPO. Previously, customers could apply for only up to Rs 2 lakh in the retail category using the UPI mode. However, market regulator SEBI has recently raised this limit to Rs 5 lakh.
With this, exchanges are now supporting HNI applications up to Rs 5 lakh using the UPI mode similar to retail category. For above Rs 5 lakh, you would still need to apply via netbanking, if your bank supports it.
The following investor categories in IPOs are now available in Paytm Money app:
| Category | Range | Who can apply? |
| Retail | Upto Rs 2 lakh | Everyone |
| HNI | Rs 2 lakh – Rs 5 lakh | Everyone |
| Policyholder | Upto Rs 2 lakh | Applicable for LIC IPO and if you have linked PAN number to LIC Policy. ( Know more here ) |
| Employee | Upto Rs 5 lakh | Only employees of the company going for IPO |
| Shareholder | Upto Rs 2 lakh | Only shareholders of the parent company |
How to apply for IPOs under the HNI category?
Starting May 1st 2022, you can apply under the HNI category through Paytm Money.
This category is fully supported under UPI in Paytm Money. To give an example, you can utilize this functionality to apply for the LIC IPO!
Steps to apply for HNI category in IPO:
- Click on the IPO of choice
- Go to the details page of IPO
- Select HNI category
- Click Apply
- Fill in the Bid details
- Submit your application
Things to keep in mind about this category:
- HNI applications cannot be cancelled
- Modification of bids can be done only upwards. For example, if you have applied for a bid of Rs 2.5 lakh, then you can modify it to Rs 3 lakh but not Rs 2 lakh.
What is the Employee category?
In line with SEBI’s circular to increase the UPI limit for IPOs to Rs 5 lakh from the earlier value of Rs 2 lakh, Paytm Money has now enabled the Employee category in IPO. If you are an employee of the company going for IPO, then you are eligible to apply under Employee quota.
Steps to apply for Employee category in IPO:
- Click on the IPO of choice
- Go to the details page of IPO
- Select Employee category
- Click Apply
- Fill in the Bid details
- Submit your application
Upcoming IPOs
The much awaited LIC IPO is all set to open on Wednesday May 4th. The IPO will be live for 4 trading sessions, and close on Monday May 9th.
Details of IPO:
Price Band: Rs 902 – Rs 949
Discount for Retail investors – Rs 45
Discount for Policyholders – Rs 60
Discount for Employees – Rs 45
You can also apply in the pre-open period before the IPO hits the market to avoid the rush hour. We will send your applications to exchange on the IPO open date.
Investment in securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for informational purpose and in no way to be considered as advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. Please refer www.paytmmoney.com for further information
