IPO Allotment Tips: Why Retail Investors Are Focusing on Shareholder Category

1. IPO Trend:

- In FY25, 32 mainline IPOs have launched, with strong interest from non-institutional investors.
- Retail investors, facing oversubscription, are shifting focus to IPOs with shareholder allotments, like Bajaj Housing Finance, which saw huge demand in the shareholder category.

2. How Shareholder Category Works:

- Companies with subsidiaries going public often reserve a portion for shareholders of the parent company.
- For example, owning Bajaj Finance shares allowed investors to apply in both categories for Bajaj Housing Finance's IPO, improving their chances of getting an allotment.

3. Upcoming IPOs with Shareholder Category:

- NTPC with NTPC Green Energy: A ₹10,000 crore IPO from NTPC’s renewable energy arm, with 10% of the issue reserved for NTPC shareholders.

- HDFC Bank with HDB Financial Services: A ₹2,500 crore IPO, including an offer for sale (OFS) from existing shareholders.

- HDFC Bank with HDFC Credila: HDFC Credila plans a big IPO in 2025, focusing on education loans.

- Hero MotoCorp with Ather Energy: Ather, known for electric scooters, is planning a ₹3,100 crore IPO, with potential benefits for Hero MotoCorp shareholders.

- Hero MotoCorp with Hero Fincorp: Hero Fincorp has filed for a ₹3,688 crore IPO, with both fresh issues and OFS components.

- SJVN with SJVN Green Energy: SJVN Green Energy will file for an IPO to raise capital soon.

4. More IPOs to Watch:

- Coal India with Bharat Coking Coal and Central Mine Planning & Design Institute: Subsidiaries of Coal India may soon go public to focus on their core operations.
- Manappuram Finance with Asirvad Micro Finance: Approved IPO with a ₹1,500 crore fresh issue.

- Canara Bank with Canara Robeco AMC: The IPO is expected to launch in Q4 FY25.

- Muthoot Finance with Belstar Microfinance: IPO approved, featuring ₹1,000 crore fresh issue and ₹300 crore OFS.

Stay Smart, Stay Ahead!