Are you planning to invest in the upcoming IPO with Shareholder Quota 2025? Some IPOs come with a special benefit called the Shareholder Quota or Shareholder Reservation. In this article, we will explain what it is, how it works, and which upcoming IPOs in India may offer it. This can help you increase your chances of getting an allotment.
Upcoming IPO with Shareholder Quota in 2025
Below is the list of upcoming IPO with shareholders quota in 2025, highlighting key details that investors should know before applying
| Brand | IPO Name | Parent Company name | Document |
|---|---|---|---|
 | ICICI Prudential Asset Management Company Limited | ICICI Bank Ltd. | DRHP |
 | Central Mine Planning & Design Institute Limited | Coal India Ltd. | DRHP |
 | Bharat Coking Coal Limited | Coal India Ltd. | DRHP |
 | Hero Fincorp Limited | Hero MotoCorp Ltd. | DRHP |
 | EAAA India Alternatives Limited | Edelweiss Financial Services Ltd. | DRHP |
 | Belstar Microfinance Limited | Muthoot Finance Ltd. | DRHP |
 | Asirvad Micro Finance Limited | Manappuram Finance Ltd. | DRHP |
 | Balaji Speciality Chemicals Limited | Balaji Amines Ltd. | DRHP |
Note: Sometimes, companies mention shareholder quota in the Draft RHP but Withdraw it in the final RHP. Always check the RHP carefully before applying.
What is Shareholder Quota in IPO?
The Shareholder quota or Shareholder Reservation is a portion of shares reserved for the existing shareholders of a listed Parent company when its subsidiary launches an Initial Public Offering (IPO). To become eligible for an IPO with shareholder reservation., you need to hold at least 1 share of the parent company on the record date.(i.e. RHP Date), The share has to be purchased before the RHP is filed and not on the day of the filing of the RHP. You Need to be Shareholder as on the date of RHP
Benefits of Shareholder Quota
- Better allotment chances – Since Only a Limited number of eligible person only can apply under this category, there is less competition under this category as compared to the retail category.
- Easy eligibility – When You Buy a single share of any company, you become shareholder of that company. Hence Holding just one share on the RHP date(i.e Record date in Major Cases) will make you a shareholder and eligible for this quota.
- Double application opportunity – In Many IPOs, you can apply in both the shareholder quota and the retail quota. This Means You can make a Double Application one under the Retail Category and One under the Shareholder Category. Interestingly, these will not be treated as multiple bids.
How to Become Eligible for Shareholder Quota?
- Check if the Upcoming IPO belongs to a subsidiary of listed parent company.
- Buy at least 1 share of the parent company before the record date(Generally RHP Date is the Record date).
- Hold the share until the record date.
- Apply under the “Shareholder Category” during the IPO subscription period.
Important Points to be noted Before Applying in Shareholders Quota IPO
- Always check the IPO RHP for record date details.
- Keep your shares in a demat account linked with your PAN.
- Eligible shareholders must have a valid PAN (Permanent Account Number) that is updated with the parent company’s shareholder register.
- Only bids that are made at the Issue Price or higher will be considered for share allocation under the shareholders quota IPO. If someone bids below the Issue Price, their application will not be accepted for allotment in this category.
- Please note that sometimes companies include a shareholder quota provision in the DRHP but withdraw it in the final Red Herring Prospectus (RHP). Investors should always carefully check the final RHP before applying.
- Apply early during the IPO window to avoid last-minute issues.
- Double-check the Category — it must show Shareholder for shareholder quota allotment.
- If applying in both Shareholder and Retail categories, make sure combined application limits (if any) are not exceeded as per the RHP.
Recent Example of Shareholder Reservation : HDB Financial IPO (2025)
HDB Financial Services, a subsidiary of HDFC Bank, had launched its IPO in July 2025.
- IPO Size: ₹12,500 crore
- Shareholder Quota: ₹1,250 crore reserved for HDFC Bank shareholders
- Record Date: June 19, 2025 (RHP Date)
- Minimum Investment Under SH Category : 20 shares (₹14,800)
- Maximum Investment Under SH Category : 260 shares (₹1,92,400)
FAQ’s on Upcoming IPO with Shareholder Reservation
Q1. Who is eligible to apply under the shareholder quota in an IPO?
Ans. Generally, only individuals and Hindu Undivided Families (HUFs) who are public equity shareholders of the parent company (the promoter) are eligible to apply under the shareholder quota. Eligibility is defined specifically in the IPO documents (Red Herring Prospectus) and excludes certain persons not allowed under applicable laws, rules, and regulations. For example, in the HDB Financial Services IPO, only individual and HUF public shareholders of HDFC Bank are allowed to apply under the shareholder reservation portion.
Q2. Is bid revision allowed under the shareholder quota or shareholder category in IPOs?
Ans. Some IPOs allow investors applying under the shareholder quota to revise their bids during the subscription period, while others do not offer this option. Therefore, it is important to carefully check the IPO prospectus or official guidelines before applying under the shareholder category to know if bid revision is permitted.
Q3. Can joint bidders apply under the shareholder quota, and who should be eligible?
Ans. Yes, joint bidders can apply under the shareholder quota. However, the primary applicant (first bidder) must be an eligible shareholder as per the IPO guidelines. This is necessary for the joint application to be accepted under the shareholder reservation category.
Q4. Can investors bid at the cut-off price under the shareholder quota in an IPO?
Ans. Yes, investors eligible under the shareholder quota are generally allowed to place bids at the cut-off price. However, this is usually subject to a certain maximum bid amount limit specified in the IPO documents. Bidding at the cut-off price means agreeing to pay the final issue price determined at the end of the subscription period, which can improve the chances of allotment.
Q5. What is the maximum investment amount allowed under the shareholder quota in an IPO?
Ans. There is no fixed rule for the maximum investment under the shareholder quota — it varies from IPO to IPO based on the provisions mentioned in the company’s Red Herring Prospectus (RHP) or any addendum.
Some common scenarios include:
Limit only in Shareholder Quota: Some IPOs allow applying for the entire reserved quota, if you meet the eligibility.
Combined Limit with Retail Category: Many IPOs cap the total investment across both Shareholder and Retail categories at ₹2,00,000.
Higher or Separate Limits: In certain cases, companies permit ₹2,00,000 in the shareholder quota in addition to ₹2,00,000 in the retail quota, or even higher limits.
Always check the RHP and any official addendums for the exact limit applicable to that specific IPO.
Q6. Q: What is the maximum number of shares I can apply for under the shareholder quota in an IPO?
The maximum shares you can apply for under the shareholder quota depend on the limit specified in the company’s RHP (Red Herring Prospectus). In many cases, the limit is up to shares worth ₹2 lakh for retail shareholders, but companies may set higher or different limits. Always check the latest RHP for the exact eligibility and maximum application size before bidding.
How to Apply in Shareholder Quota – Step-by-Step
- Login to your application platform
Use your bank’s ASBA/net-banking IPO service or your broker/app. - Open the IPO application page
In net-banking look for ASBA / IPO / IPO Application. In broker apps, look for the Current IPOs / Ongoing IPOs tab. - Select the IPO
Click the IPO you want to apply for from the list of open IPOs. - Choose the correct investor category
From the category dropdown select “Shareholder”, “Shareholder Reservation” or similar. If applying in both categories (Retail + Shareholder), you’ll need to submit two separate applications — one for each category. Important: selecting the wrong category can disqualify you from shareholder allotment. - Enter lot quantity & price
– Enter the number of shares you want to apply for (in multiples of the lot size).
– Select Cut-off Price (recommended) or enter a price within the price band. - Choose payment method
– ASBA (Net-banking): select the bank account to block funds.
– Broker : enter UPI ID and be ready to approve the mandate in your UPI app. - Review & submit
Verify: IPO name, category = Shareholder, quantity, price, PAN, demat details. Then submit the application. - Approve payment (if using UPI)
Open your UPI app and approve the mandate request before it times out. For ASBA the bank will block the funds automatically. - Track your application
You can check the status at IPO Allotment Status.