In case of Book Built issue

1. In case an issuer company makes an issue of 100% of the net offer to public through voluntary book building process under profitability route:

a) Not less than 35% of the net offer to the public shall be available for allocation to retail individual investors;

b) Not less than 15% of the net offer to the public shall be available for allocation to non-institutional investors i.e. investors other than retail individual investors and

Qualified Institutional Buyers;

c) Not more than 50% of the net offer to the public shall be available for allocation to Qualified Institutional Buyers.

2. In case of compulsory Book-Built Issues

a) at least 75% of net offer to public being allotted to the Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded.

b) Not more than 15% the net offer to the public shall be available for allocation to non-institutional investors

c) Not more than 10% the net offer to the public shall be available for allocation to retail individual investors

In case of fixed price issue

The proportionate allotment of securities to the different investor categories in a fixed price issue is as described below:

1. A minimum 50% of the net offer of securities to the public shall initially be made available for allotment to retail individual investors.

2. The balance net offer of securities to the public shall be made available for allotment to:

a. Individual applicants other than retail individual investors, and

b. Other investors including corporate bodies/ institutions irrespective of the number of securities applied for.

(b) Which are the investor categories to which reservations can be made in an initial public issue on competitive basis?

Reservation on competitive basis can be made in a public issue to the following

categories:

i. Employees of the company

ii. Shareholders of the promoting companies in the case of a new company and shareholders of group companies in the case of an existing company

iii. persons who, as on the date of filing the draft offer document with the Board, are associated with the issuer as depositors, bondholders or subscribers to services of the issuer

In a public issue by a listed company, the reservation on competitive basis can be made for retail individual shareholders and in such cases the allotment to such shareholders shall be on proportionate basis

(c) Is there any discretion while doing the allotment amongst various investor categories as per the permissible allocations? No, there is no discretion in the allotment process.

All allotees except anchor investors and retail individual investors are allotted shares on a proportionate basis within their respective investor categories. The allotment to each retail individual investor shall not be less than the minimum bid lot, subject to availability of shares in retail individual investor category, and the remaining available shares, if any, shall be allotted on a proportionate basis.