If you’re not familiar, the shareholders quota in an IPO is a segment of shares designated for existing shareholders of the parent company. This can offer a notable advantage in securing shares compared to retail investors.
For instance, in the recent Bajaj Housing Finance IPO, approximately 8% of the shares were allocated to shareholders. After the bidding process, the chance of getting one lot through this quota was around 72%, while it was only 20% for retail investors.
This strategy suggests that buying even a small number of shares in the parent company before an IPO could enhance your chances of allotment. Keeping this in mind might give you an edge in future IPOs.
Stay tuned and take advantage of this strategy for upcoming investment opportunities. Keep following Signalz for more insights and updates on market trends.