The Indian stock market is buzzing again as SEBI (Securities and Exchange Board of India) has officially approved two fresh IPOs along with one IPO that includes a special shareholder quota.
For retail investors, these updates matter because IPOs are often oversubscribed, making allotment difficult. A shareholder quota, however, gives an advantage to those who already own shares in the parent company.
But the big question is – should you rush to apply for these IPOs or wait until listing day to see the market mood? Let’s dive deep into the approvals, shareholder quota benefits, and upcoming IPOs that may reserve shares for existing shareholders in 2025.
SEBI Approves Two New IPOs
SEBI’s approval opens the door for companies to raise capital and list on Indian stock exchanges. Here’s a quick look at the two IPOs:
| Company | Parent / Segment | Issue Type | Key Highlights |
|---|---|---|---|
| Bharat Coking Coal Ltd (BCCL) | Subsidiary of Coal India | Offer for Sale (OFS) | Coal India to sell a large chunk of shares; no new equity issue planned. |
| Aequs Ltd | Aerospace & Manufacturing | Fresh Issue + OFS (expected) | Plans to fund expansion and strengthen operations in the high-demand aerospace industry. |
Why are these IPOs important?
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BCCL IPO: Given its strong link with Coal India, this IPO could attract investors who see long-term value in the energy and mining space. But the real question is – will it replicate Coal India’s historic IPO success?
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Aequs IPO: With the aerospace sector growing rapidly in India, Aequs might appeal to investors betting on defense and manufacturing growth. Could it be India’s next aerospace success story?
What is Shareholder Quota in IPOs?
In simple terms, shareholder quota is a reserved portion of IPO shares for investors who already own shares in the parent company.
For example, if a subsidiary lists on the stock exchange, shareholders of the parent company get a priority window to apply for shares under this special category.
Why does it exist?
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To reward loyalty of long-term investors.
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To give a better chance of allotment to those who supported the parent company.
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To ensure IPO demand is partly backed by existing investors who already believe in the group.
One IPO with Shareholder Quota – Key Highlights
Among SEBI’s approvals, one IPO stands out because it features a shareholder quota.
This means:
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If you own shares of the parent company by the record date, you qualify to apply.
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Even a single share may make you eligible.
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In some IPOs, you can apply in both retail and shareholder categories – doubling your chances of allotment.
For retail investors, this is a game-changer. But should you buy parent company shares just to qualify for the quota? That depends on your long-term view of the parent company’s fundamentals.
Why Shareholder Quota Matters for Retail Investors
Higher Allotment Chances
Retail categories often see lakhs of applications. But shareholder quotas have fewer applicants, which improves your odds of getting shares.
Dual Application Option
Some IPOs allow investors to apply in both retail and shareholder categories. This increases your chances of securing allotment significantly.
Small Investment Requirement
Often, holding just one share of the parent company is enough. So, you don’t need a large upfront investment to qualify.
Question to think about: Could shareholder quota become the best strategy for small investors in oversubscribed IPOs?
Upcoming IPOs with Shareholder Quota in 2025
Apart from SEBI’s latest approvals, several big IPOs lined up for 2025 are expected to include shareholder quotas. Let’s look at some likely candidates:
| Upcoming IPO (2025) | Parent Company | Shareholder Quota Eligible? | Expected Category Size |
|---|---|---|---|
| Central Mine Planning & Design Institute | Coal India | Yes | To be announced |
| Hero FinCorp | Hero MotoCorp | Likely | To be announced |
| Greaves Electric Mobility | Greaves Cotton | Likely | To be announced |
| Canara HSBC Life Insurance | Canara Bank | Possible | To be announced |
| Coal India Subsidiaries (BCCL, others) | Coal India | Yes | Based on OFS approval |
These IPOs are expected to generate massive retail interest. If you are already holding parent company shares, you may benefit from these upcoming quotas.
How to Apply Under Shareholder Quota
If you want to take advantage of shareholder quota IPOs, here’s the step-by-step guide:
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Check IPO Prospectus (DRHP/RHP): Look for shareholder quota eligibility details.
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Hold Parent Shares Before Record Date: Make sure shares are in your Demat account before the cut-off.
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Apply in the Correct Category: Select “Shareholder” when applying via broker/UPI.
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Consider Dual Application: If allowed, apply in both shareholder and retail categories.
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Track Allotment Results: Watch out for announcements on exchange websites or via your broker.
Should You Apply or Wait?
This is the million-dollar question.
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If you are an existing shareholder, applying under quota makes sense because your allotment chances are higher.
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If you are only looking for listing gains, you might wait until closer to listing day to judge market demand.
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For long-term investors, shareholder quota IPOs can be a smart way to accumulate fundamentally strong companies at issue price.
But remember — IPOs are not guaranteed profits. Always evaluate fundamentals before applying.
Conclusion
With SEBI approving two new IPOs (Bharat Coking Coal and Aequs) and an IPO featuring shareholder quota, Indian investors are entering another exciting phase of market opportunities.
The shareholder quota, in particular, is emerging as a powerful advantage for retail investors who want better chances of allotment without competing in the overcrowded retail pool.
The key takeaway is this: watch record dates, hold parent company shares, and apply smartly.
So now the question is — will you grab the shareholder quota opportunity in upcoming IPOs, or play safe and wait for the listing day?