In recent years, an increasing number of mainboard and SME IPOs have started reserving a dedicated portion of their issue size for existing shareholders. This trend is expected to continue in 2025, offering long–term investors additional opportunities to participate at preferential terms.
Shareholder quota in an IPO typically allows investors who already hold shares of the promoter or group company to apply under a separate category. This can sometimes mean better chances of allotment compared to the regular retail category.
Before applying, investors should carefully study the draft red herring prospectus (DRHP), understand the company’s fundamentals, and evaluate grey market trends, but always prioritise official information over rumours.