Upcoming IPOs with shareholder quota: Hero FinCorp, HDB Financial Services, NTPC Green Energy & more

The higher the subscription, the lower the chances of getting an IPO allotment. However, retail investors can increase their chances of securing an IPO allotment by applying under the shareholders' quota.

If listed companies' subsidiaries go public, they usually reserve a portion for their shareholders. For instance, the recently listed Bajaj Housing Finance IPO reserved shares worth ₹500 crore under the shareholders' quota.

This special quota allows retail investors to apply under the retail and shareholder categories, increasing their chances of obtaining allotment. According to experts, to be eligible for the shareholders' quota, retail investors should have at least one share of the listed entity before the filing date of the red herring prospectus (RHP).

Upcoming IPOs that may have shareholders' quota

HDB Financial IPO

NTPC Green Energy IPO

NTPC, through its exchange filing, has confirmed the quota for eligible shareholders of the power generation company.

Hero FinCorp IPO

Hero FinCorp IPO has reserved a quota for Hero MoroCorp shareholders, according to the DRHP.

Ather Energy IPO

Hero MotoCorp is one of the largest external shareholders in the company, with a 37.2% stake. According to DRHP, Ather Energy has reserved a quota for Hero MotoCorp shareholders.

Belstar Microfinance IPO

Belstar Microfinance, the subsidiary of Muthoot Finance, has received a nod from SEBI to launch an IPO consisting of a fresh issue of ₹1,000 crore and OFS of ₹300 crore.

The NBFC is an arm of the Muthoot Group and a wholly-owned subsidiary of Muthoot Finance Limited (MFL). Hence, the public offer may have a portion set aside for Muthoot Finance shareholders. The final status will be confirmed once it files RHP.

Asirvad Micro Finance IPO

The IPO will likely have a shareholder's quota for Manappuram Finance investors. However, this will be confirmed once the company files its red herring prospectus (RHP) with SEBI.