Upcoming IPO with Shareholders Quota – How to Apply

Upcoming IPO with Shareholders Quota

What is the Shareholder Quota in IPOs?

With the help of a subsidiary company, stakeholders could apply to be listed companies. This is called the parent company.  Moreover, a parent company can be, when holding 50% of the partnership, a listed company. 

To cite an example, ABC company is the parent company of XYZ (50%) partnership, called the parent company. Moreover, XYZ is going to be listed on NSE and BSE emerge, wherein investors must have 1 share of ABC in order to apply by shareholder quota. 

Who Can Apply Under the Shareholder Category in IPOs?

HNI investors, retail investors, and employees of the parent company can apply for the shareholder quota in an IPO if they hold at least one share of the parent company on the record date. The record date is typically when the Red Herring Prospectus (RHP) is filed. It’s important to note that the parent company’s shares must be in the investor’s demat account on the record date. Since India follows a T+2 settlement cycle, investors need to buy the shares at least two days before the record date to be eligible.

Ashirvad Micro Finance IPO

Asirvad Microfinance Limited is a leading player in India’s microfinance sector, providing financial assistance to low-income households. Further, the company specializes in offering small-ticket loans to enhance livelihood, foster entrepreneurship, and boost financial inclusion. IPO size will be[*] with a face value of 10 for each share. 

Belstar Microfinance IPO

One of the leading firms’ names is “Belstar Microfinance Limited” which is renowned for providing small loans to all individuals such as rural and semi-urban areas, especially women entrepreneurs. Moreover, these loans help people earn income and improve their lives. This assists an individual in fulfilling their desires like studying at home, desire, and farming as well. As they have an amazing portfolio regarding their work and aim to expand their business, they have now decided to launch an IPO. 

Additionally, IPO proceeds will be used mainly to expand the company’s loan and strengthen its financial position in order to meet capital needs. Some of the funds will also go towards paying off current debts to reduce borrowing costs.

According to sources, a company might surge Rs 1300 crore and Rs 1000 crore via fresh issue, while 3,000 million through an offer for sale by existing shareholders. 

In a nutshell, this IPO has the possibility to hit the market and provide a chance for investors to get higher listing gains and long-term profit also. 

Aegis Vopak Terminals IPO

Aegis Vopak Terminals has filed (DRHP) with SEBI to launch an entirely fresh IPO valued at 3,500 crores. The IPO aims to pay debt and cover the company’s expenses. It has a fresh issue of equity shares with a face value of Rs 10 for each share. Further, the public issue is managed by merchant bankers ICICI Securities, BNP Paribas, IIFL Capital Services, Jefferies India, and HDFC Bank. this has a partnership with Aegis Logistics and holds a 50.1% stake, while Netherlands-based global leader, Royal Vopak, owns a 47.31% stake in AVTL. Moreover, public stakeholders own a 29% stake in the company. 

Ather Energy IPO 

Ather Energy was founded in 2013 and is involved in designing all its products in India. This also aims to expand the company via an IPO, Fresh issues of equity shares worth ₹3,100 crore and an offer-for-sale of 2.2 crore equity shares by promoters and investors.    

Tiger Global, Caladium Investments, NIIF, Binny Bansal’s 3 State Ventures, along with co-founders Tarun Mehta and Swapnil Jain, all are selling their shares

Through OFS, 37.2% of shares have been held by Hero Moto Corp and it is not part of OFS. 

Hero FinCorp IPO

Hero FinCorp, the financial services arm of two-wheeler manufacturer Hero MotoCorp, has a goal for an IPO worth ₹3,668 crore. Therefore, they have filed DRHP to the SEBI. Hero FinCorp is a non-bank financial company (NBFC) in India that offers a variety of financial products to individuals and small businesses (MSMEs). 

The IPO is a combination of an Offer For Sale (OFS) of ₹1,568 crore by investor shareholders and a fresh issue of equity shares worth Rs ₹2,100 crore. 

JM Financial Ltd, HSBC Securities and Capital Markets (India) Private Ltd,  ICICI Securities Ltd, Jefferies India Private Ltd, and SBI Capital Markets Ltd are the lead managers of this Initial Public offering(IPO).

Brigade Hotel Ventures IPO

Brigade Hotel Ventures submitted preliminary papers to the SEBI for an IPO of Rs. a fresh issue of equity shares of face value ₹10 each, aggregating to ₹900 crore. The issue has no offer-for-sale (OFS) component. 

IPO proceeds will go for repayment either fully or partly of borrowing taken by the company and its subsidiary. 

HDB Financial IPO

HDB Financial Services, a NBFC, has submitted DRHP with the SEBI for an IPO worth Rs 12,500 crore. An IPO has a fresh issue of Rs 2,500 crore equity shares and OFS consists of Rs 1,000 crore shares sold by shareholders.  Jefferies, JM Financial, Morgan Stanley & Nomura are the advisors of the IPO