For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

What is the Limit for a Retail Investor When Investing in an IPO?

|

It's extremely important to know how a retail investor is defined when investing in an IPO. This is important because, retail investors are sometimes offered a discount in an IPO. For example the recent IPO of Shemaroo offered retail investors a price discount of 5 per cent in the IPO offer.

 

So how is a retail investor defined?

 

What is the Limit for a Retail Investor When Investing in an IPO?
A retail investor is defined as one who invests less than Rs 2 lakh in the Initial Public Offering. Now any amount invested in excess of Rs 2 lakh is considered as an investment by a High Networth Individual.

Therefore, to qualify as a retail investor you should invest a sum of Rs less than Rs 2 lakh, as you also get a discount in the IPO.

In case you desire to invest more than this sum, the ideal way would be to invest in your spouse or relative's name.

Until a few years ago a retail investor was defined as an investor investing less than Rs 1 lakh. However, that amount was considered very small and the new limit has been fixed at Rs 2 lakh and above.

GoodReturns.in

Read more about: retail investor ipo
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X