The Initial Public Offering (IPO) market on Dalal Street has continued its remarkable momentum in FY25, with 32 mainline IPOs hitting the exchanges so far, showing no signs of fatigue. This surge in IPO activity has drawn significant interest from non-institutional investors (NIIs) and retail investors, with the latter often seeing their subscription categories oversubscribed in many public issues.
In response to this heightened demand, retail investors are increasingly seeking IPOs that feature a shareholder category, a special allotment for investors who hold shares in the parent company of the IPO-issuing firm. This category provides a dual advantage for investors who can apply under both retail and shareholder categories, boosting their chances of getting shares allotted. For instance, owning just one share of the parent company can open the door to applying in both categories.
One such case was observed during the Bajaj Housing Finance IPO, where the shareholder category was bid for 18.54 times, far exceeding the retail category’s 7.41 times oversubscription. A total of ₹500 crore worth of shares were reserved for Bajaj Finance and Bajaj Finserv shareholders, demonstrating the growing popularity of the shareholder category.
As the IPO market heats up, here are some upcoming issues that may include a shareholder category.
NTPC Green Energy IPO: Opportunity for NTPC Ltd Shareholders
NTPC Green Energy, the renewable energy subsidiary of NTPC Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise around ₹10,000 crore through its IPO. Notably, a quota of up to 10% of the issue size is earmarked for shareholders of NTPC Ltd, which positions it as an attractive opportunity for investors looking to enhance their allotment chances through this special category.
As India’s largest power producer, NTPC’s foray into renewable energy is expected to draw significant attention, with retail and institutional investors eyeing both the green energy potential and the special shareholder allotment.
HDFC Bank’s HDB Financial Services IPO: A Key Subsidiary Going Public
HDB Financial Services, a prominent non-banking financial company (NBFC) and a subsidiary of HDFC Bank, is all set to launch its IPO. The offer includes a fresh equity issue of ₹2,500 crore and an Offer for Sale (OFS) by existing shareholders. The IPO will likely include a shareholder category for HDFC Bank investors, offering them a unique opportunity to gain from this offering.
Given the pedigree of HDFC Bank and the strength of HDB Financial Services, this IPO is expected to generate significant demand from retail and institutional investors alike.
HDFC Credila IPO: India’s Leading Education Loan Financier Prepares for Market Debut
Another potential blockbuster in the pipeline is the IPO of HDFC Credila Financial Services, India’s leading education loan provider. After the merger of Housing Development Finance Corporation (HDFC) with HDFC Bank, regulatory restrictions prompted the sale of a majority stake in HDFC Credila. However, HDFC Bank still retains a stake in this education loan giant.
While the details of the shareholder category for this IPO are yet to be fully revealed, HDFC Bank shareholders could have an edge when applying for shares through this exclusive allotment option.
Hero MotoCorp’s Ather Energy IPO: Electric Vehicle Revolution
Ather Energy, backed by Hero MotoCorp, has announced plans to raise ₹3,100 crore through its IPO. Ather Energy is known for its electric scooters, a fast-growing segment in India’s mobility landscape. The shareholder category in this IPO could benefit Hero MotoCorp shareholders, allowing them to apply for shares under both the retail and shareholder categories.
This IPO is expected to attract attention not only due to the growing focus on electric vehicles (EVs) but also because of the special allotment for shareholders of Hero MotoCorp, a significant stakeholder in Ather Energy.
Hero Fincorp IPO: Financial Services Arm of Hero MotoCorp
Hero Fincorp, the financial services arm of Hero MotoCorp, has also filed its DRHP for an IPO valued at ₹3,688 crore, which includes a fresh issue of ₹2,100 crore. A portion of the issue will be reserved for Hero MotoCorp shareholders, giving them the opportunity to participate in the financial services sector through this allotment.
The financial services sector has been expanding rapidly, and Hero Fincorp is well-positioned to capitalize on this growth, making its IPO an attractive proposition for investors.
SJVN Green Energy IPO: A Green Energy Play for SJVN Shareholders
SJVN Green Energy, a subsidiary of SJVN Ltd, has also begun the process of going public by filing its DRHP. As a key player in the renewable energy sector, SJVN Green Energy is expected to raise significant funds for expansion. SJVN Ltd shareholders are likely to benefit from a special allotment in this IPO, further enhancing the appeal of this offering.
Coal India Subsidiaries IPO: Bharat Coking Coal and CMPDI
Coal India, one of the largest coal-producing companies globally, is planning to list two of its subsidiaries: Bharat Coking Coal and Central Mine Planning and Design Institute (CMPDI). Both IPOs are expected to offer special shareholder quotas, allowing Coal India Ltd shareholders to apply under this category and boost their chances of allotment.
Bharat Coking Coal’s strategic importance in supplying the steel industry and CMPDI’s role as a consultancy arm focused on mineral exploration and infrastructure make these IPOs potentially lucrative for retail investors.
Manappuram Finance’s Asirvad Micro Finance IPO
Asirvad Micro Finance, a subsidiary of Manappuram Finance, has received SEBI’s approval to raise ₹1,500 crore through an IPO, which will be a fresh issue of equity shares. While details about the shareholder category have yet to be confirmed, Manappuram Finance shareholders could see a special allotment in this microfinance IPO, an attractive opportunity in the ever-expanding microfinance sector.
Canara Robeco AMC IPO: Banking on Canara Bank Shareholders
Canara Robeco Asset Management Company (AMC), a joint venture between Canara Bank and Robeco, is expected to launch its IPO in the fourth quarter of FY25. This IPO will likely include a shareholder quota for Canara Bank investors, giving them a potential edge in the allotment process.
The asset management industry is growing rapidly, and Canara Robeco AMC’s IPO offers a window for retail investors to gain exposure to this booming sector.
Belstar Microfinance IPO: Muthoot Finance Subsidiary
Belstar Microfinance, a subsidiary of Muthoot Finance, has also received SEBI’s nod to launch an IPO featuring a fresh issue of ₹1,000 crore and an OFS of ₹300 crore. Muthoot Finance shareholders may receive a special allotment in this IPO, giving them a higher chance of getting shares in this promising microfinance venture.
Conclusion
The IPO frenzy on Dalal Street shows no signs of slowing down in FY25, with retail investors increasingly leveraging the shareholder category to enhance their chances of share allotment. From renewable energy to financial services and electric vehicles, these upcoming IPOs offer a wide range of investment opportunities for retail and institutional investors alike.
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