Employee Quota Discount Calculator

Companies going public often reserve part of the issue for eligible employees at a price discount to the public issue price. Enter the issue price and the discount disclosed in the RHP to see your effective per-share cost and savings.

Your Discounted Price (₹/share)

₹450.00

vs public issue price of ₹500 — a 10% discount

Total Cost at Discount

₹13,500

30 shares

You Save

₹1,500

vs paying the public issue price

How the Employee Quota Discount Calculator works

SEBI (ICDR) Regulations allow up to 5% of post-issue capital to be reserved for eligible employees of the issuing company, typically offered at a discount to the public issue price. Unlike the price band itself, the exact discount percentage is not a fixed statutory rate— each company discloses its own discount (commonly seen historically in the 5-10% range) in the RHP for that specific IPO, so always check the actual figure for the issue you're applying to rather than assuming a standard number.

Application value is capped at ₹2,00,000 per eligible employee at the guaranteed allotment level. If the employee category is undersubscribed at that level, SEBI permits applications above ₹2,00,000 to be considered too, up to an absolute individual cap of ₹5,00,000 — but that additional allotment is conditional on under-subscription, never guaranteed the way the first ₹2,00,000 typically is.

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

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Frequently Asked Questions

Is the employee discount the same for every IPO?

No — SEBI permits a discount but doesn't fix its percentage. Each company discloses its own employee discount in the RHP for that specific IPO, commonly in the 5-10% range historically, but always check the actual figure for the issue in question.

What is the maximum I can apply for under the employee quota?

₹2,00,000 is treated as the standard cap most companies design their employee-quota allotment around. SEBI permits applications up to ₹5,00,000 to be considered if the category is undersubscribed at the ₹2,00,000 level, but that portion above ₹2,00,000 isn't guaranteed.

Can I apply in both the employee quota and the retail category?

This depends on the specific IPO's terms as disclosed in its RHP — some issues allow eligible employees to also apply in retail, others don't. Always check the specific IPO's application form and RHP.

Who counts as an 'eligible employee' for this quota?

Definitions vary slightly by issue but generally include permanent employees and directors of the issuer (and sometimes its subsidiaries) as of a specified cut-off date, excluding promoters and immediate relatives of promoters in most cases — check the specific IPO's RHP for its exact eligibility definition.

Does the employee discount apply to the cut-off price too?

Yes — if an eligible employee bids at cut-off, the discount is applied to whatever cut-off price is finally discovered, not to a fixed reference price.