Jio Platforms IPO: How can you apply in multiple categories? Allotment rules & all you need to know

Jio Platforms IPO reservation mix
Eligible employees of the company will get a discount of Rs 54 per share, while eligible shareholders will not receive any discount. They need to apply for the issue at the cut-off price. However, investors can apply in multiple categories, including the retail and HNI categories, along with the shareholder category. They cannot, however, apply in both the retail and HNI categories.

According to the RHP of the company, only eligible RIL shareholders, including individuals and Hindu Undivided Families (HUFs), who are public equity shareholders of RIL can apply under this category. Bids received at or above the issue price will be considered. Investors need to apply for a minimum of one lot, with a maximum application amount of Rs 2 lakh per investor (14 lots worth Rs 1,87,992).

Investors applying in the retail category can bid for a minimum of one lot, or 12 equity shares (Rs 13,428), and a maximum of 14 lots, or 168 equity shares. Small HNI investors need to apply for a minimum of 15 lots (180 equity shares worth Rs 2,01,420) and a maximum of 74 lots (888 equity shares worth Rs 9,93,672). Big HNIs need to apply for a minimum of 75 lots (900 equity shares worth Rs 10,07,100).

Deep Himanshu Shah, Research Analyst at Shoonya, said that an eligible RIL shareholder can apply under the shareholder category and submit a separate application under another eligible category, such as the retail category. The offer document states that these bids are not treated as multiple bids, subject to applicable limits.

An eligible investor can bid for up to Rs 2 lakh under the shareholder category and place a separate bid in the retail category. Applying in two categories can improve the chances of allotment, although it does not guarantee one, he explained. "That is different from submitting more than one application in the same category."

How will allotment be done?
The allotment of equity shares to each retail investor will not be less than the minimum bid lot, subject to the availability of shares in the category. Any remaining available shares will be allotted on a proportionate basis. Under proportionate allotment, shares will be rounded off to the nearest integer, subject to the minimum allotment being equal to the minimum application size.

For the shareholder category, proportionate allotment will be carried out subject to the minimum bid lot and the availability of equity shares in the RIL shareholder reservation portion, according to the RHP filed by the company. If aggregate demand in this portion exceeds the number of equity shares available at or above the issue price, the allocation will be made on a proportionate basis, it added.

Investors who also qualify for the retail, non-institutional or employee categories may apply under the relevant categories separately. However, investors should understand that applying across categories does not guarantee allotment, particularly if demand exceeds the number of shares reserved, said Trivesh D, COO of Tradejini.

"They should verify their eligibility, ensure their PAN and demat details are accurate, and follow the prescribed application process. The key is to understand the rules for each category rather than assume multiple applications will automatically improve allotment chances," he added.