Shares to buy for shareholder’s Quota for upcoming IPOs

How many among us were confused and asking questions regarding shareholders eligibility criteria during HDFC AMC IPO?

How many among us were querying regarding the number of shares one will get in shareholders quota or how many lots should I apply in Shareholders quota to get maximum shares??

As per the Basis of Allotment sheet issued by the Registrar, the following table depicts how HDFC shareholders received shares.

No. of Shares Applied No. of Shares Allotted     Listing Gain
13 13 8138
26 16 10016
39 18 11268
52 21 13146
65 24 15024
78 27 16902
91 29 18154
104 32 20032
117 35 21910
130 38 23788
143 40 25040
156 43 26918
169 45 28170

From the above table, it is clear that shareholders got minimum 13 shares and maximum 45 shares depending upon the number of lots they have applied and accordingly the minimum profit they got was Rs. 8138 and max. profit was whopping Rs. 28170. However, you must be wondering why we are sharing the observation when these are things of past.

The motive behind this study is to aware investors the importance of shareholders quota and how one should use this quota in their favor to maximize their return from IPOs.

We all know these days many companies are choosing the path of IPOs to raise money or provide an exit route to existing shareholders. So we can expect a lot of primary action in coming time and should be prepared to grab this opportunity with both hands to make our wallet richer.

Generally, if any subsidiary is listing via IPOs the shareholders of Parent company gets the benefits and concept of shareholders quota comes into the picture, the same we have observed during HDFC AMC IPO their parent company HDFC limited shareholders got extra benefits being with the company and 2,40,000 no. of shares were reserved for them. So what are the next upcoming opportunities having the similar advantage to that of HDFC AMC?

Actually to be eligible for the shareholders’ quota the record date is generally considered when the company files DRHP to SEBI, so one’s name should be in the record list of company’s book before company files for the IPO. The IZ team has researched the probable list of companies whose subsidiaries may be listed in future and one should have at least one share in their account to reap out the benefits of being a shareholder. The list of such companies is depicted below

Sr.no Parent Company Subsidiary to be listed in future
1 ICICI Bank ICICI Pru Mutual Funds
2 HDFC Limited HDFC Securities, HDFC Financial Services
3 HDFC Bank HDFC Securities, HDFC Financial Services
4 Kotak Bank Kotak Securities
5 Axis Bank Axis Securities
6 SBI SBICAP SECURITIES LTD
7 Reliance Capital Reliance General Insurance
8 Infoedge PolicyBazar
9 Reliance Industries JIO, Retail Business
10 Tata Motors Tata Technology Limited

    *Buy 1 Share* of below companies, To be the share holder of all the below companies. IPO expected and we can apply in share holder’s category if there is provision of the same.

    *Kotak Mahindra bank* (Kotak Securities, Kotak AMC, Kotak Life Insurance, Kotak General Insurance)

    *ICICI Bank Ltd* (ICICI Prudential Mutual Fund, I-VEN Biotech Ltd)

    *State Bank of India* (SBI Cap Securities, SBI General Insurance)

    *Reliance Industries Ltd* (Reliance GIO, Reliance Retail, Reliance Solar, Reliance Life Insurance)

    *Reliance Capital Ltd* (Reliance General Insurance Ltd)

    *LT* (LT Mutual Fund, LT Reality, LT Power, LT Steel, LT Sea Woods)

    *Axis Bank Ltd* (Axis Securities, Freecharge, Enam Asset Management, Axis Capital Ltd)

    *DHFL* (DHFL Advisory, DHFL Finance)

    *Tata Motors* (Tata Technology, Jaguar Landrover)

    *HDFC Ltd* (Gruh Finance, HDFC ERGO, HDFC Credila, HDFC Investments, HDFC Holdings)

    *HDFC Bank Ltd* (HDB Finance, HDFC Securities)

    *InfoEdge* (Policy Bazar)

    ____________________________________

    *Total Price of Above shares*

    Kotak Mahindra Bank – 1259
    ICICI Bank Ltd – 329
    State Bank of India – 298
    Reliance Industries Ltd – 1233
    Reliance Capital Ltd – 462
    LT – 1347
    Axis Capital Ltd – 629
    DHFL – 644
    Tata Motors – 266
    HDFC Ltd – 1940
    HDFC Bank Ltd – 2042
    Naukri – 1654

    *Total – 12,103*