Shareholder Quota Eligibility Checker

When a listed company brings its subsidiary public, SEBI lets it reserve part of the issue for the parent company's existing shareholders. Check whether your holding and its timing qualify you for this reservation category.

Shareholder Quota Eligibility

Likely Eligible

You held parent-company shares in time for the record date — you likely qualify to apply in this IPO's shareholder reservation category, typically 5-15% of the total issue.

How the Shareholder Quota Eligibility Checker works

SEBI allows a listed company's subsidiary to reserve 5% to 15% of its IPO for existing shareholders of the parent company — the shareholder quota. Eligible investors include retail investors, HNIs and employees of the parent company, provided they held at least one parent-company share as of a specified record date, typically set around when the RHP is filed.

Because India's exchanges settle trades on a T+2cycle, a share bought today doesn't land in your demat account until 2 trading days later — so you need to have purchased parent-company shares at least 2 trading days before the record date for them to count. Shares bought on or after the record date, or too close to it to settle in time, don't qualify.

If eligible, you can typically apply in boththe shareholder category and the regular retail category for the same IPO — two independent shots at allotment, each subject to that category's own subscription level and proportionate/lottery allotment process.

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

What is the shareholder quota in an IPO?

A reservation of 5-15% of an IPO's shares for existing shareholders of the parent/listed company bringing its subsidiary public, applicable when a company holds at least one parent-company share as of a specified record date.

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

Generally yes, if you're eligible — most such IPOs allow shareholders to apply in both categories, giving two separate allotment opportunities for the same IPO.

Why does my purchase date matter, not just whether I currently hold the shares?

Because of India's T+2 settlement cycle — a share bought today doesn't reach your demat account for 2 trading days. If you buy too close to the record date, the shares won't have settled into your account by then and won't count for eligibility.

Where do I find the shareholder quota record date for a specific IPO?

It's published in the IPO's Red Herring Prospectus (RHP) or in a separate shareholder-quota public notice the parent company issues, usually a few days before the issue opens.

Does selling my parent-company shares after the record date affect my eligibility?

No — eligibility is locked in based on your holding as of the record date. Selling afterward (before applying to the subsidiary's IPO) doesn't typically affect your shareholder-quota eligibility for that specific issue, though always confirm against that IPO's specific RHP terms.