return to news
  1. Upstox
    /
  2. News
    /
  3. Market News
    /
  4. IPO
    /
  5. Upcoming IPOs with shareholder quota: Hero FinCorp, HDB Financial Services, NTPC Green Energy & more

Market News

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

WhatsApp Image 2024-06-20 at 9.58.49 AM.jpeg
By Kamal Joshi

3 min read | Updated on September 27, 2024, 14:19 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Upcoming IPOs with likely shareholders quota: If the subsidiaries of listed companies go public, they usually keep a portion aside for their shareholders. Hence, retail investors can apply under the retail and shareholder categories, increasing their chances of obtaining allotment.

To be eligible for shareholder category, retail investors should have at least one share of the listed entity before the filing date of the red herring prospectus (RHP).

To be eligible for shareholder category, retail investors should have at least one share of the listed entity before the filing date of the red herring prospectus (RHP).

The initial public offering (IPO) frenzy is at its peak, with the Reserve Bank of India's latest Bulletin noting that September 2024 is on track to become the busiest month for public issues (including mainboard and SME) in the last 14 years. Initial share sales are receiving a robust response from institutional and retail investors.

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.

Also Read: Swiggy files updated draft papers for ₹3,750 crore IPO

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

The board of HDB Financial Services, a unit of HDFC Bank, has approved an IPO with a fresh issue worth ₹2,500 crore and an offer-for-sale (OFS) by existing shareholders. The public offer will likely have a portion set aside for HDFC Bank shareholders.

NTPC Green Energy IPO

NTPC's renewable energy arm, NTPC Green Energy, filed draft papers with the market regulator, Securities and Exchange Board of India (SEBI), to raise ₹10,000 crore through an IPO. The issue is solely a fresh issue of shares with no OFS component.

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

Hero FinCorp IPO

Hero FinCorp, a financial services division of two-wheeler manufacturer Hero MotoCorp Ltd, has approved raising ₹2,100 crore via fresh issue of shares and OFS of ₹1,568 crore by existing shareholders.

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

Ather Energy IPO

Electric two-wheeler maker Ather Energy has filed preliminary papers with SEBI to raise ₹3,100 crore through a fresh issue and an OFS of 2.2 crore shares.

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

Asirvad Micro Finance, an arm of listed NBFC Manappuram Finance, has received SEBI's approval to raise funds via IPO. The proposed issue is solely a fresh issuance of shares worth ₹1,500 crore.

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.

Disclaimer: The information above is based on current DRHP filings and available data. Shareholder category details are subject to change, and final status will be confirmed after the release of the RHP.
To learn more about IPO listings, schedule and upcoming IPOs, click here.
Uplearn

About The Author

WhatsApp Image 2024-06-20 at 9.58.49 AM.jpeg
Kamal Joshi is a business journalist who covers industries, markets and IPOs. He is passionate about breaking news and enjoys playing tennis, where he loves flexing his backhand.

Next Story