IPO Allotment Insights: An Overview for Retail Investors
With the remarkable success of Bajaj Housing Finance’s IPO, retail investors are brimming with excitement over investment opportunities. The IPO not only garnered attention with its impressive response but also resulted in investors witnessing a substantial return on their investments as prices doubled right at the listing. However, despite the overwhelming demand, many investors were left without allotments, prompting a keen interest in upcoming IPOs.
Analyzing the Allotment Landscape
Thus far in FY25, a total of 32 mainstream IPOs have hit the market, primarily attracting non-institutional investors who led the charge in subscriptions. Retail categories in most public offers have seen significant over-subscription rates, indicating a robust appetite from individual investors.
Increasing Allotment Chances through Shareholder Categories
To enhance their potential for allotment, retail investors are strategically focusing on IPOs that feature a ‘shareholder’ category. A number of listed companies are considering IPOs for their subsidiaries and often extend unique allotments to their existing shareholders. By holding just one share of the parent company, investors can apply under both retail and shareholder categories, thereby amplifying their chances of receiving an allotment.
Recent IPOs and Their Performance
For example, the Bajaj Housing Finance IPO achieved a staggering subscription rate of 67.43 times, specifically allocating shares worth ₹500 crore for Bajaj Finance and Bajaj Finserv shareholders. The retail category saw 7.41 times subscription, whereas the shareholder segment experienced 18.54 times bids, showcasing the strong demand from existing shareholders.
Upcoming IPOs with Shareholder Categories
Here’s a rundown of forthcoming IPOs that are expected to have shareholder categories, allowing investors to potentially benefit from enhanced allotment opportunities:
| Company | IPO Size (₹ Crore) | Shareholder Category Details |
|---|---|---|
| NTPC Green Energy | 10,000 | 10% reserved for NTPC Limited shareholders. |
| HDB Financial Services | 2,500 | Fresh equity shares and OFS from existing shareholders included. |
| HDFC Credila Financial Services | N/A | IPO expected in 2025, details on allotments forthcoming. |
| Ather Energy | 3,100 | Details on shareholder allotments yet to be announced. |
| Hero Fincorp | 3,688 | Includes fresh shares and OFS. |
| SJVN Green Energy | N/A | IPO imminent, details to be filed with SEBI. |
| Bharat Coking Coal (Coal India) | N/A | Focus on autonomy in operations post-listing. |
| CMPDI (Coal India) | N/A | Approvals in place for listing; details to follow. |
| Ashirvad Micro Finance | 1,500 | No OFS; entirely fresh issue of equity shares. |
| Canara Robeco Asset Management | N/A | IPO expected in Q4 of the financial year. |
| Belstar Microfinance | 1,300 | Combination of fresh issue and OFS. |
Conclusion
The enthusiasm surrounding IPOs among retail investors is palpable, especially in the context of significant successes like that of Bajaj Housing Finance. By focusing on shareholder categories, retail investors are positioning themselves to potentially enhance their chances of allotment in the ever-evolving IPO landscape. Keeping a close eye on upcoming IPOs, especially those with a focus on existing shareholders, can offer lucrative opportunities for adept investors.
