Firm Allotment
Firm allotment refers to the allocation of shares in an IPO to non-retail investors, guided by SEBI regulations. It reserves a portion of shares for specific groups, such as Mutual Funds, permanent employees, and others, distinct from the general public pool. The breakdown may include: Foreign Institutional Investors (FIIs) at 30%, Development Financial Institutions (DFIs) at 20%, Mutual Funds at 20%, Regular Employees (permanent) at 10%, Employees of the Promoting Company at 10%, and Lead Bankers at 5%. Any remaining shares can be allotted to promoters, ensuring a structured distribution to institutional and affiliated investors.
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