Upcoming IPOs with Shareholder Quotas: HDB Financial, Hero FinCorp, NTPC Green Energy & More - Read Now
Upcoming IPO: The IPO market is buzzing with activity, and September 2024 is shaping up to be the busiest month in over a decade. According to the Reserve Bank of India's recent bulletin, a significant number of public issues are on the horizon, drawing the attention of institutional and retail investors alike. One of the key factors adding excitement to the market is the shareholder quota, which allows retail investors holding shares in a parent company to apply under both the retail and shareholder categories, thereby increasing their chances of securing an IPO allotment.
Upcoming IPO: What is the Shareholder Quota?
The shareholder quota is a special provision that benefits existing shareholders of a company when its subsidiary goes public. For instance, the recent Bajaj Housing Finance IPO reserved shares worth ₹500 crore for its shareholders. Retail investors with at least one share of the parent company before the filing of the Red Herring Prospectus (RHP) can apply under this quota, thereby increasing their allotment chances.
IPOs with Potential Shareholder Quotas
Several upcoming IPOs are expected to feature a shareholder quota, making this an exciting time for retail investors:
1. HDB Financial Services IPO
HDB Financial Services, a subsidiary of HDFC Bank, has announced an IPO with a fresh issue worth ₹2,500 crore. The public offer may reserve a portion for HDFC Bank shareholders, offering them a unique opportunity to invest in this promising financial services company.
2. NTPC Green Energy IPO
NTPC’s renewable energy arm, NTPC Green Energy, has filed draft papers with SEBI to raise ₹10,000 crore through an IPO. NTPC has confirmed that eligible shareholders of the parent company will have a reserved quota in this IPO, making it a compelling opportunity for existing NTPC investors.
3. Hero FinCorp IPO
Hero FinCorp, the financial services arm of Hero MotoCorp, is planning to raise ₹2,100 crore through a fresh issue and an additional ₹1,568 crore through an offer for sale (OFS). The DRHP states that a quota will be reserved for Hero MotoCorp shareholders, allowing them to participate in this high-demand offering.
4. Ather Energy IPO
Ather Energy, known for its electric two-wheelers, is gearing up to raise ₹3,100 crore via IPO. As one of its largest shareholders, Hero MotoCorp’s investors will likely benefit from the shareholder quota, providing them with another exciting investment opportunity.
5. Belstar Microfinance IPO
Belstar Microfinance, a subsidiary of Muthoot Finance, has received SEBI approval to raise ₹1,000 crore through a fresh issue. While final details will be confirmed with the filing of the RHP, it's expected that a portion of the shares will be reserved for Muthoot Finance shareholders.
6. Asirvad Micro Finance IPO
Asirvad Micro Finance, an arm of Manappuram Finance, is planning to raise ₹1,500 crore via IPO. Like the others, it is expected that Manappuram Finance shareholders will have a reserved quota once the RHP is filed.
