The advantages and disadvantages of applying in NII quota-
Pros
Cons
NIIs can apply for more than Rs 2 lakhs in an IPO.
NIIs are not eligible for the price discount available for retail investors.
NIIs need not have to register with SEBI.
The reserved allocation is less (15%) when compared to RII (35%). This decreases the chances of allotment in case of oversubscription.
NII's cannot withdraw the bid only increase the bid quantity.
The reserved allocation for NIIs is 15%, the lowest in the 3 investor categories in an IPO. QIB has 50% and RIIs have 35%. So, in an oversubscribed IPO, the chances of allotment are less. Also, Trusts, Corporate bodies and many other institutions fall in the NII category. This makes it a very competitive pool for allotment.