Upcoming IPOs with Shareholders Quota in 2024

The shareholder quota in an IPO is really useful for increasing chances of IPO allotment on purchasing just one share of the listed parent company. Following is the list of upcoming IPOs with shareholders quota in 2024.

Here's What You Need to Know!

This is the opportunity often given to the shareholders of the parent company when one of its subsidiaries has decided upon and is ready to take the plunge into the IPO waters. Such an opportunity is so termed a Shareholder Quota in IPOs. It's a nifty feature wherein the existing shareholders of the parent company get a chance to grab a piece of the action at a preferential rate quite often. So what's it all about? Let’s break it down!

The shareholder quota usually consists of 5% to 15% of the total shares offered in an IPO. If, say, one of the subsidiaries of a company is coming into the market, it would keep aside some percent of its shares, especially for the shareholders of the parent company.

Why is that good?

Investors: This is one of the most fantastic ways to increase the chances of allotment in a hot IPO. You only need to hold just one single share of its parent company to become eligible!

IPO Company: You make sure, as an IPO company, that this gets good backing from the existing investors by improving overall subscription and visibility.

EXPECTED IPOs with SHAREHOLDER QUOTA IN 2024

Following is a list of some of the upcoming IPOs that are likely to have a shareholder quota:

IPO Name	Parent Company	SEBI IPO Status
Asirvad Micro Finance*	Manappuram Finance	SEBI approval secured
Bajaj Housing Finance	Bajaj Finance Bajaj Finserv	SEBI approval secured
Belstar Microfinance*	Muthoot Finance	DRHP filed
Hero FinCorp	Hero MotoCorp	DRHP filed
NTPC Green Energy	NTPC	DRHP awaited
Tata Passenger Electric Mobility	Tata Motors	DRHP awaited
HDB Financial	HDFC Bank	DRHP awaited
Reliance Retail	Reliance Industries	DRHP awaited
Reliance Jio	Reliance Industries	DRHP awaited
Canara HSBC Life Insurance Company	Canara Bank	DRHP awaited
NHPC Renewable	NHPC	–
ONGC Green	ONGC	–
SJVN Green Energy	SJVN	–
SBI Mutual Fund	SBI	–
HDFC Ergo	HDFC Bank	–
HDFC Credila	HDFC Bank	–
Kotak AMC	Kotak Mahindra Bank	–
PNB MetLife Insurance	Punjab National Bank	–
Bajaj Energy	Bajaj Hindusthan Sugar	–
Reliance General Insurance	Reliance Capital	–
ICICI AMC	ICICI Bank	–
Axis AMC	Axis Bank	–
Jeevansathi.com	Info Edge	–

* DRHP doesn’t mention shareholder quota but RHP may include.

The Shareholder Quota is not only a win-win situation for the investors but also for the IPO companies. A chance does exist to increase your allotment chances and at the same time contribute toward the success of an IPO. So, if you are a shareholder, do not let this golden opportunity slip away to have that extra edge in the IPO world.

Shareholder Quota FAQs :

How many shares of the parent business do I have to buy to be eligible for the shareholder quota in IPOs?
Thus, no matter how many shares you have, one needs to be a shareholder. So, for eligibility, you may have only one share in your demat account.
What does the record date play a role in for the shareholder quota?
Your shares have to be in your demat account as on the record date to get eligible for a shareholder quota in an IPO, and therefore you need to buy shares in the parent company a few days in advance.
How may one best qualify for an initial public offering (IPO) shareholder quota?
Buying a single share of the parent firm as soon as the DRHP is filed is the simplest hack.
How much may a shareholder quota in an initial public offering (IPO) bet?
Generally, investors can bid up to INR 2,00,000. But it depends on the final capping as per RHP of the company coming up with the IPO.
Are bids accepted at the cutoff price by shareholders' quota investors?
Yes, the cut-off price for bidders in the shareholder reserve part is available to qualified shareholders.

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