Answer
Retail individual investors (RIIs) may receive a discount of ₹45–₹60 per share in IPO applications, but it is not mandatory.
In case of a discount to normal/small investors (Retail Investors), you should always bid at the “Cut-off Price”. This is the best way to get an allotment, whether you apply online or offline. The discount you get will be automatically subtracted from the final price the company decides on.
How to Bid:
- Online Application (through Netbanking, UPI, or your Broker’s App):
- Pick the “Cut-off Price” option instead of putting in a specific price.
The system will work out the maximum amount needed with retail discount in mind.
Offline/Physical Application (using the ASBA Form):
- Leave the price column empty, or tick the “Cut-off” box if that option is there.
- Your bank will then process the application based on the final price declared by the company.
Why Use the Cut-off Price?
By choosing the cut-off price, you show you are ready to pay whatever the final price is (within the price range set by the company). The special discount for retail investors will then be given to you on that final price.
Important Note: Only a Retail Individual Investor (RII) can get this special discount.