A retail investor in an Initial Public Offering is defined as one who cannot apply for shares whose aggregate value exceed Rs 2 lakhs.
What this means is that if you are a retail investor make sure that you do not subscribe to shares whose value exceeds Rs 2 lakhs. If you do apply for less than this sum then you would be treated as a non institutional bidder.
In fact, non institutional bidders have an allocation of 15 per cent in a book build IPO. Qualified Institutional Bidders are large domestic institutions like LIC, UTI etc., who bid for very large amounts in an IPO. Almost 50 per cent of the IPO amount is reserved for these set of institutional investors.
Retail investors need to quote their PAN number for allotment of shares. In case of wrong PAN number or no PAN number, the allotment of shares would be rejected.
If you want to apply as a retail investor make sure that you stay under the threshold limit of Rs 2 lakh. Otherwise you fall in another category whose allotment may not be favourable to you.