bNII stands for Big Non-Institutional Investor. It is the sub-category for bids above Rs 10 lakh by investors who are not qualified institutional buyers, such as wealthy individuals, family offices, companies, trusts and partnership firms. Two thirds of the non-institutional portion is reserved for this category, which in a standard mainboard issue works out to about 10 percent of the net offer. Because the amounts are large, bNII bids can strongly influence the headline subscription number, and the category often sees the highest oversubscription, especially in popular issues. Allotment, when oversubscribed, is based on a lot-wise draw, and all successful applicants get at least the minimum quantity. A significant share of bNII bids is placed on the last day, and many are funded using short-term borrowing that is repaid after allotment, so the final numbers can change when bids are cancelled or reduced. Investors should treat the bNII figure as a signal of interest from large private investors, not as proof of the company’s quality. IPO Bulletin lists the bNII subscription separately from sNII and retail.
Example: A company reserves 10 percent of a 1 crore share issue for bNII, which is 10 lakh shares. If bNII bidders ask for 3 crore shares, the category is subscribed 30 times and a draw decides who receives shares.