In the IPO landscape, allotment is shaped by a range of rules and categories that influence who gets access to shares. SEBI mandates, for instance, that at least 35% of the public issue be reserved for retail individual investors, giving them a fair opportunity to participate.
Alongside these structured routes, certain IPOs introduce a shareholder quota – an allocation set aside for investors who hold shares in the parent or group company. This category isn’t part of SEBI’s mandatory structure but can offer existing shareholders of the promoter entity an additional path to participate in upcoming IPOs.
As more group-backed and listed-company subsidiaries enter the public market, IPOs with shareholder quota are gaining attention.
What Is a Shareholder’s Quota?
A shareholder’s quota is when a subsidiary of a listed company goes public and sets aside a portion of its IPO for shareholders of the parent company.
This quota creates a unique opportunity for investors. By holding even a single share of the parent company before a specified cut-off date, the shareholders become eligible to apply under this category.
A recent example of this was the IPO of HDB Financial Services, a subsidiary of HDFC Bank. In this case, 10% of the total issue was reserved for shareholders of HDFC Bank. To apply under the shareholder quota, investors had to hold shares of HDFC Bank on or before a specified record date.
How Does Shareholder Quota Benefit Investors?
If you hold even a single share of a listed parent company before the record date, you may be eligible to apply for its subsidiary’s IPO under the shareholder quota.
This quota often sees fewer applicants than the regular retail category, which can improve your chances of allotment.
You can also apply under both the shareholder and retail categories as long as your combined application does not exceed ₹2,00,000. If you’re applying only under the shareholder category, you can go beyond this cap and apply up to the entire portion reserved for shareholders.
To participate, make sure you own the parent company’s shares on the record date and select the shareholder category when applying. While allotment isn’t guaranteed, this route offers an alternate entry point, often with lower competition than the general retail segment.
List of Upcoming IPOs With Shareholder’s Quota
Here’s a list of companies which could have a shareholder’s category when they come out with their IPO.
| Subsidiary IPO Name | Parent Company |
| Hero FinCorp | Hero MotoCorp |
| Greaves Electric Mobility | Greaves Cotton |
| Brigade Hotel Ventures | Brigade Enterprises |
| Belstar Microfinance | Muthoot Finance |
| Prestige Hospitality Ventures | Prestige Estates |
| Dev Accelerator | Dev Information Technology |
| SIS Cash Services | SIS Limited |
| Canara Robeco Asset Management | Canara Bank |
| EAAA India Alternatives | Edelweiss Financial Services |
| Canara HSBC Life Insurance | Canara Bank |
| Central Mine Planning & Design Institute | Coal India |
| Bharat Coking Coal Limited (BCCL) | Coal India |
Overview Of Upcoming IPO With Shareholders Quota
- Hero FinCorp IPO:
| Parameter | Details |
| Offer Price | Undeclared |
| Face Value | ₹10 per share |
| Opening Date | Undeclared |
| Closing Date | Undeclared |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹3668.13 crore |
| Listing At | BSE, NSE |
Source: SEBI DRHP
Hero FinCorp is a leading non-banking financial company (NBFC) in India and a key subsidiary of Hero MotoCorp. It offers a wide range of loan and financing services such as two-wheeler loans, personal loans, home renovation loans, and SME lending. The company operates with a strong retail presence across urban, semi-urban, and rural markets, leveraging the extensive Hero MotoCorp distribution network.
As part of its growth strategy and to strengthen its financial base, Hero FinCorp has decided to go public through an IPO. The company aims to boost its loan book, meet regulatory capital requirements, and reduce its borrowing costs through this equity infusion.
- Greaves Electric Mobility IPO:
| Parameter | Details |
| Offer Price | Undeclared |
| Face Value | ₹1 per share β |
| Opening Date | Undeclared |
| Closing Date | Undeclared |
| Sale Type | Fresh Issue (₹1,000 cr) + Offer for Sale (18.9 cr shares) |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹1,000 cr fresh + OFS by Greaves Cotton and Abdul Latif Jameel (~18.9 cr shares) |
| Listing At | BSE, NSE |
Source: SEBI DRHP
Greaves Electric Mobility is an electric vehicle (EV) company and a subsidiary of Greaves Cotton. It designs, manufactures, and sells electric two-wheelers and three-wheelers under brands such as Ampere, Ele, and Teja. With a strong presence across urban and rural markets, the company focuses on affordable, last-mile mobility solutions in India’s growing EV segment.
The company filed its DRHP in December 2024 to raise an IPO to fund product development, expand manufacturing capabilities, build battery assembly units, pursue strategic acquisitions, and meet general corporate needs. With this public offering, the company aims to strengthen its market position and scale operations across the EV ecosystem.
- Brigade Hotel Ventures IPO
| Parameter | Details |
| Offer Price | Undeclared |
| Face Value | ₹10 per share |
| Opening Date | Undeclared |
| Closing Date | Undeclared |
| Sale Type | 100% Fresh Issue |
| Issue Type | Book Built Issue IPO |
| Issue Size | Initially ₹900 crore; now ~₹774 crore after reducing via ₹126 crore pre-IPO placement |
| Listing At | BSE, NSE |
Source: SEBI DRHP
Brigade Hotel Ventures, a wholly owned subsidiary of Brigade Enterprises, is a leading owner and developer of chain-affiliated hotels in South India. As the second-largest private hotel operator in the region, it manages nine properties under well-known hospitality brands like Marriott, Accor, IHG, and InterContinental across Bengaluru, Chennai, Kochi, Mysuru, and GIFT City, totaling 1,604 rooms.
The company submitted the DRHP in October 2024 as a part of the IPO application. It aims to utilize the IPO proceeds primarily to reduce debt (₹481 crore), purchase promoter‑linked land (₹107 crore), pursue acquisitions and other strategic growth initiatives, and support general corporate purposes.
- Belstar Microfinance IPO
| Parameter | Details |
| Offer Price | Undeclared |
| Face Value | ₹10 per share |
| Opening Date | Undeclared |
| Closing Date | Undeclared |
| Sale Type | Fresh Issue (₹1,000 cr) + Offer for Sale (₹300 cr) |
| Issue Type | Book Built Issue IPO |
| Issue Size | ~₹1,300 cr total |
| Listing At | BSE, NSE |
Source: SEBI DRHP
Belstar Microfinance supports financial inclusion through microfinance solutions. Backed by Muthoot Finance and private equity investors, it uses a proprietary app, Samrithi, to enhance rural and semi-urban lending. The company focuses on lending to micro-entrepreneurs and underserved segments.
Belstar submitted the DRHP in May 2024 as a part of the proposed IPO whose proceeds will primarily bolster capital for loans (₹1,000 cr fresh issue) and fund general corporate purposes, including working capital and strategic initiatives.
- Prestige Hospitality Ventures
| Parameter | Details |
| Offer Price | Undeclared |
| Face Value | ₹5 per share |
| Opening Date | Undeclared |
| Closing Date | Undeclared |
| Sale Type | Fresh Issue (up to ₹1,700 cr) + Offer for Sale (up to ₹1,000 cr) |
| Issue Type | Book Built Issue IPO |
| Issue Size | Up to ₹2,700 cr total |
| Listing At | BSE, NSE |
Source: SEBI DRHP
Prestige Hospitality Ventures is the hospitality arm of Bengaluru-based Prestige Estates Projects Ltd. It operates and develops luxury, upper-upscale, and midscale hotels across India under brands like JW Marriott, Sheraton, and Conrad by Hilton. As of December 2024, it had seven operational hotels (1,445 keys), one under renovation (190 keys), and 12 more under development (2,509 keys).
The company has recorded strong revenue growth in recent years and has applied for an IPO with DRHP dated April 2025. A large portion of the IPO’s fresh issue proceeds, around ₹1,121 crore, is earmarked for debt-related and strategic purposes. Of this, ₹397 crore will be used to repay or prepay borrowings at the company and subsidiary level, while ₹724 crore is expected to support further investment into subsidiaries and inorganic expansion initiatives. The public issue is part of the company’s broader effort to strengthen its capital structure, expand its footprint, and capture long-term opportunities in India’s growing hospitality and tourism sector.
Takeaway for Investors
The shareholder quota in IPOs offers an additional application route for individuals holding shares in the parent company of an IPO-bound subsidiary. While not a regulatory requirement, this category is included by some companies as part of their offer structure.
As more subsidiaries of listed companies file for IPOs, the shareholder quota remains one of several categories available to investors. Reviewing offer documents and timelines is necessary to understand specific eligibility requirements and application limits under this route.
If you’re considering applying through the shareholder quota, it’s important to go beyond the category itself. Take time to review the company’s fundamentals, offer documents, and how the IPO fits into your overall investment plan. A well-informed approach can help you make decisions aligned with your financial goals.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
Yash Vora is a financial writer with the Informed InvestoRR team at Equentis. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
