These Parent Companies May Give You Access to Hot Upcoming IPOs

Anyone who applies for popular Initial Public Offerings (IPOs) knows how tough it is to get an allotment.

Retail bids are in the millions, oversubscription reaches double digits within hours, and most investors walk away without a single share.

In such a crowded market, is there a quiet door that can improve your chances?

There is, and surprisingly, most investors don't even notice it. The IPO market has a small but meaningful doorway that many investors overlook- the shareholder quota.

When a company lists its subsidiary, it often reserves a portion of the offer for the parent's shareholders.

It's not a guarantee of allotment, but it gives existing shareholders a less crowded window to participate in the listing.

Access is straightforward: you only need to hold the parent's shares before the record date and apply under the shareholder category when the issue opens.

With more conglomerates unlocking value in their subsidiaries, this route has become particularly useful.

Financial services, energy, consumer businesses, and digital platform groups are preparing to list their subsidiaries on the public market. For long-term investors who already own the parent company, these IPOs offer an opportunity that goes beyond the typical retail rush.

This editorial looks at 23 companies preparing to list their subsidiaries and how parent shareholders may benefit from this advantage.

Hero FinCorp

Hero Fincorp, the lending arm of Hero MotoCorp, holds 52.43 million (m) equity shares, representing 41.19% of the total fully paid-up equity shares.

In addition, Hero MotoCorp also holds 12.73 m Class B Compulsorily Convertible Preference Shares (CCPS).

These CCPS will convert into an equal number of equity shares prior to the filing of the Red Herring Prospectus. This, on a fully diluted basis, Hero MotoCorp's total holding amounts to 65.16 m equity shares, representing 39.56% of the company's equity.

Hero Fincorp is a captive non-banking finance company (NBFC) that supports the parent company's sales volume by financing customer purchases. The company received SEBI approval for its Rs 36.7 billion (bn) IPO in May 2025.

The approval remains valid for 12 months, giving the company time to decide the launch window and bring the issue to the market before the deadline.

As such, Hero MotoCorp shareholders are likely to receive their quota, as the listing will unlock value for existing owners.

Greaves Electric Mobility

Greaves Electric Mobility is the electric vehicle arm of Greaves Cotton, known for its "Ampere" brand of scooters. The company has also received SEBI approval for a Rs 10 bn IPO in May 2025. This approval is also valid for 12 months.

The subsidiary represents Greaves' shift from engine-driven components to electric mobility solutions. A separate listing helps the EV business raise long-term capital without being constrained by the cyclical nature of the parent's engine business.

Existing Greaves Cotton shareholders may receive a quota because the parent owns a majority stake in the EV subsidiary.

Belstar Microfinance

Belstar is promoted by Muthoot Finance, which holds a 66.1% stake in the company (as of 31 March 2025).

Belstar operates as a microfinance institution focusing on rural and low-income borrowers. The business runs independently from the parent's gold loan franchise but gives Muthoot exposure to an entirely different credit segment.

Listing Belstar allows Muthoot to unlock value and strengthen its consolidated financial profile. That link makes Muthoot shareholders eligible for a quota.

The company's IPO approval expired in August, largely due to the microfinance crisis. A fresh approval is possible once market conditions stabilise.

Ashirvad Micro Finance

Ashirvad is the microfinance subsidiary of Manappuram Finance, which holds a 98.3% stake in the company as of 30 June 2025. Ashirvad helps diversify the parents' loan mix beyond gold loans.

The business has scale and a strong presence in southern India. The company received SEBI approval for a fresh issue of Rs 15 bn to fund its expansion in April 2024. The IPO was put on hold due to the microfinance crisis.

Ashirwad's IPO is expected only after the market conditions improve. With the parent as the promoter, its shareholders are likely to receive quota when the issue finally reaches the market.

SIS Cash Services

SIS Cash Solutions handles cash logistics, ATM replenishments, and vault management.

It complements SIS's core security services business, giving the parent a diversified revenue stream in physical security and cash handling.

The company received SEBI approval in July 2025, and the IPO could happen before the 12-month expiry. The public issue will consist of fresh equity shares worth Rs 1 bn, and an offer-for-sale of 37.15 lakh shares by existing shareholders.

SIS shareholders may receive a quota in line with the promoter group's holdings.

Prestige Hospitality Ventures

This subsidiary holds Prestige Estates hospitality assets, including hotels and luxury hospitality ventures.

Prestige Hospitality, which is 100% promoter-owned, received SEBI approval for a Rs 27 bn IPO in August 2025. The IPO is expected soon.

This separate listing monetises the hotel portfolio and helps Prestige unlock value from its long-standing hospitality assets. Shareholders of Prestige Estates may be eligible for quotas as the parent company retains ownership of the hospitality vertical.

EAAA India Alternatives

This is the alternatives and asset-management business of Edelweiss Financial Services.

The subsidiary manages private equity, credit, and structured funds. Edelweiss is planning to sell a 10-20% stake in its alternative arm for Rs 15-20 bn to deleverage its parent-level balance sheet.

The company is expected to fetch a valuation of at least Rs 150 bn. According to multiple reports, the company also has a 10% reserve quota for Edelweiss shareholders. This IPO helps Edelweiss deleverage and unlock value as Edelweiss transitions to an asset-light, fee-based model.

ICICI Prudential AMC

ICICI Bank and Prudential jointly own ICICI Prudential AMC, with the ICICI Group holding 51% and Prudential owning the remaining 49%.

The company's IPO is likely to hit the market in the second week of December, with an expected valuation of around Rs 1 trillion (tn).

The offer includes a reservation of up to 10% for eligible ICICI Bank shareholders. The AMC business is a fee-generating, high-return-on-equity franchise. Listing the AMC expands its visibility and allows value unlocking.

SBI Mutual Fund

India's largest AMC, SBI Mutual Fund, is preparing for its IPO with expected listing in the first half of 2026.

This is expected to be a large one in India's asset management sector, with State Bank of India (SBI) selling 6.3% and its joint venture partner, Amundi, 3.7%, valuing it at around Rs 1 tn.

SBI remains the promoter with a 61.9% stake, making SBI shareholder eligible for the shareholder quota.

Central Mine Planning and Design Institute

The Central Mine Planning and Design Institute (CMPDI) is wholly owned by Coal India.

The company is the brain behind Coal India's mining operations, handling exploration, resource planning, and geological consultancy.

CMPDI filed its DRHP with SEBI in May 2025, which is still pending approval. Following the DRHP filing, Coal India shareholders are expected to receive their quota. Listing CMPDI will unlock the value of a unique, highly specialised subsidiary within Coal India's structure.

Bharat Coking Coal Limited

Bharat Coking Coal (BCCL), one of Coal India's key subsidiaries, was established to mine and supply high-grade coking coal.

Its operations sit at the heart of India's steel industry, which depends heavily on this fuel to run blast furnaces and maintain production.

BCCL has received SEBI approval for the IPO, which will be an offer for sale (OFS) of 465 m shares entirely by Coal India. The IPO dates have not yet been announced. Coal India shareholders may receive a quota due to the parent-subsidiary relationship.

Reliance Retail and Reliance JIO

Reliance Retail is India's largest retail chain and one of Reliance Industries' core consumer verticals. On the other hand, Jio is India's largest telecom operator and the anchor of Reliance's digital ecosystem. The upcoming IPOs of both companies are expected to be the largest in India's history.

The listing will help Reliance sell part of its stake and allow investors like Google and Meta to unlock value from their early stakes in Jio's digital ecosystem. Reliance shareholders stand to gain in two ways.

First, listing both arms help unlock value by reducing the holding-company discount. Second, eligible investors may also benefit from IPO allotment through the shareholder quota.

Jeevansathi.com

Jeevansathi is Info Edge's matrimonial business, part of the same group that launched Naukri and 99acres.

A potential listing separates the matchmaking vertical from the consumer internet asset and monetises it. The company has not yet filed for an IPO, but Info Edge shareholders may receive a quota.

SJVN Green Energy

SJVN Green is SJVN's renewable energy subsidiary, focusing on solar and wind assets.

It's the group's growth engine. Listing SJVN Green Energy helps raise capital for rapid expansion in renewable energy. The company has not yet filed for an IPO, but SJVN shareholders may receive a quota.

LIC Mutual Fund

LIC MF is the asset management arm of Life Insurance Corporation (LIC).

The AMC manages assets worth Rs 440 bn and aims to increase this to Rs 1 tn by March 2026. Listing this business increases transparency and helps LIC monetise its rapidly growing vertical. LIC shareholders may receive a quota.

NHPC Renewable

NHPC, known mostly for hydropower, has a special subsidiary, NHPC Renewable Energy, which is rapidly expanding its renewable energy (RE) portfolio.

This subsidiary holds NHPC's renewable energy assets. India's push towards green energy makes this listing strategically important.

NHPC shareholders may receive their quota once the renewable subsidiary moves ahead with its IPO.

ONGC Green

ONGC Green is a wholly owned subsidiary of Oil and Natural Gas Corporation (ONGC) that manages its green energy and gas business.

It focuses on renewable energy sources such as solar and wind, biofuels, green hydrogen, green ammonia, and carbon capture technologies.

ONGC shareholders may receive their quota once the renewable subsidiary moves ahead with its IPO.

Kotak AMC

Kotak AMC is one of India's top fund houses.

A listing strengthens the bank's asset-management visibility and unlocks value. Kotak Mahindra Bank shareholders may receive their quota once this subsidiary moves ahead with its IPO.

Axis AMC

Axis AMC is one of India's leading mutual fund houses and taking it public would give the business deeper access to capital while improving transparency and governance.

Since Axis Bank is the promoter, its shareholders are expected to receive their quota whenever the AMC's IPO proceeds.

Bajaj Energy / Bajaj Allianz Life

The Bajaj Group's energy and insurance businesses-Bajaj Energy and Bajaj Allianz Life-have been long-standing candidates for value unlocking.

While neither subsidiary has yet filed a DRHP, discussions about potential listings have circulated in market circles for years.

To this end, Bajaj Energy received SEBI approval for a Rs 54.5 bn IPO in 2019. However, it was later postponed. On the other hand, Bajaj Allianz Life has no plans for an IPO at this time.

That said, a future listing will provide these verticals with independent access to capital and clear market valuations. When the IPO process formally begins, and draft papers are filed, shareholders of Bajaj Finserv Group companies are likely to receive a quota based on the parent company's promoter role.

Conclusion

As India's IPO pipeline expands, the shareholder quota has quietly emerged as a meaningful advantage for long-term investors.

Many conglomerates are unlocking value through listings across finance, energy, consumer, and digital segments, and parent shareholders stand to benefit both from value creation and preferential access.

While timelines vary and several subsidiaries are still awaiting approvals, staying invested in the right parent companies can position investors ahead of the rush when these IPOs finally hit the market.

However, instead of relying only on hype, it is necessary to carefully analyse the company's fundamentals, including financial performance, corporate governance practices, and growth practices.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...