Retail investors eye shareholder category for better IPO allotment; upcoming issues to watch

NTPC Green's issue will have up to 10 percent of the issue earmarked under the shareholder category.

The IPO frenzy has continued unabated on Dalal Street, with 32 mainline issues hitting the bourses for far in FY25, with no signs of fatigue seen yet. Non-institutional investors have been key buyers, with the retail category of most public issues seeing oversubscription.

In a bid to boost their chances of allotment, retail investors are eyeing IPOs that feature a 'shareholder' category. Listed companies with subsidiaries planning to go public often offer a special allotment for shareholders of the parent company.

Owning just one share of a parent company can boost an investor's chances of allotment by allowing them to apply under both the retail and shareholder categories.

After Bajaj Housing Finance's IPO received bids worth 67.43 times, retail investors decided to raise their chances of being allotted shares by investing through the 'shareholders' category. Shares worth Rs 500 crore were reserved for Bajaj Finance and Bajaj Finserv shareholders, so while the retail category was oversubscribed by 7.41 times, the shareholders category was bid for 18.54 times.

Here are some other upcoming issues that may have a 'shareholder' category:

NTPC with NTPC Green Energy

NTPC's renewable energy arm, NTPC Green Energy, has filed a draft red herring prospectus (DRHP) with SEBI to launch its much-anticipated Rs 10,000-crore initial public offering. The IPO will feature a quota for existing shareholders of parent company NTPC Ltd, with a maximum 10 percent of the issue earmarked under this category.

Also Read | NTPC Green Energy files DRHP for Rs 10,000-crore IPO, earmarks portion for NTPC shareholders

HDFC Bank with HDB Financial Services

HDB Financial Services, a non-banking subsidiary of HDFC Bank, has approved plans for an initial public offering (IPO) that will include a fresh equity issue worth Rs 2,500 crore and an offer for sale by existing shareholders.

HDFC Bank with HDFC Credila

The country's top education loans financier, HDFC Credila Financial Services, has shortlisted five investment banks as advisors as it gears up to float a big-bang initial public offer (IPO) in 2025, four persons in the know told Moneycontrol on the condition of anonymity.

Housing Development Finance Corp. sold a majority stake in its education loan unit, Credila, to comply with regulatory restrictions imposed by the Reserve Bank of India following its merger with HDFC Bank. The exact capital structure of the shareholders after the fund infusion is not clear, but HDFC Bank continues to hold a stake in the lender.

Also Read | EQT and ChrysCapital-promoted HDFC Credila picks 5 i-banks for mega Rs 5,000 cr plus IPO

Hero MotoCorp with Ather Energy

Electric two-wheeler manufacturer Ather Energy has announced its plans to go public with an initial public offering (IPO), which will include a fresh issue of shares worth Rs 3,100 crore. Ather Energy, supported by Indian bike-maker Hero MotoCorp, is known for its electric scooters.

Also Read | Indian electric two wheeler-maker Ather Energy files for IPO, including Rs 3,100 crore fresh issue

Hero MotoCorp with Hero Fincorp

Hero Fincorp, the financial services arm of India's largest two-wheeler maker Hero MotoCorp, said that it has filed draft prospectus with market regulator SEBI for Rs 3,688 crore initial public offering. The offer contains fresh issue of shares worth Rs 2,100 crore. The financial services division will also raise Rs 1,568 crore through an Offer For Sale.

SJVN with SJVN Green Energy

Sources suggest that listed public sector undertaking SJVN's renewable energy arm, SJVN Green Energy will file its draft red-herring prospectus with the markets regulator soon in a bid to raise fresh capital.

Coal India with Bharat Coking Coal

According to reports, Coal India is likely to list its subsidiary Bharat Coking Coal. The firm is a producer of coking coal, a key ingredient supplied to the to the steel industry. "Listing this will allow Coal India to streamline its focus on core operations while enabling the newly listed entities to operate with great autonomy and efficiency," said ICICI Securities.

Coal India with Central Mine Planning and Design Institute

Coal India is also likely to list its mining consultancy arm Central Mine Planning and Design Institute. The coal PSU has secured the nod from the Department of Investment and Public Asset Management as well as the coal ministry. CMPDI, headquartered in Ranchi, serves as Coal India's consultancy firm, providing expertise in mineral exploration, mining and infrastructure engineering, among others.

Manappuram Finance with Asirvad Micro Finance

Asirvad Micro Finance, a subsidiary of listed NBFC Manappuram Finance, has received Sebi's nod to raise funds through an initial public offer. The proposed initial public offering is only a fresh issue of equity shares of up to Rs 1,500 crore with no offer for sale component, according to the DRHP.

Canara Bank with Canara Robeco AMC

The initial public offering (IPO) of Canara Robeco Asset Management Company (AMC) is expected to be launched in the fourth quarter of the current financial year, Canara Bank MD & CEO K Satyanarayana Raju has said. “We have completed all the approvals, only appointment of merchant bankers is in process, hence we expect listing will come in fourth quarter of this fiscal,” he said.

Muthoot Finance with Belstar Microfinance

Muthoot Finance got market regulator Sebi’s approval for its microfinance subsidiary, Belstar Microfinance, to launch an initial public offering (IPO). The IPO will feature a fresh issue of Rs 1,000 crore and an offer for sale (OFS) of Rs 300 crore.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.