Yes, SBI shareholders holding SBI shares as on February 18, 2020 can apply in both categories, provided their application amount in the shareholder category does not exceed 200,000. To be eligible for the shareholder category, what is the date of holding the share? The record date for shareholders is February 18, 2020.
The cut-off date is the date of RHP filing that is 18th Feb 2020. Any investor who holds 1 or more shares of SBI on 18th Feb 2020 will be eligible for applying under shareholders category of SBI Cards IPO.
Only Individuals and HUFs who are the public equity shareholders of SBI (State Bank of India) or Promoter of SBI Cards, can apply in shareholder quota. You have to at least 1 share of SBI in your demat account on February 18, 2020, to be eligible to apply under shareholders reservation category.
Yes, you can apply in both retail and shareholders categories of SBI Cards IPO using the same demat account. Note that in this case, you are eligible for a maximum limit of Rs 200,000 in shareholders category.
In some public issues, the company going public keeps a special reservation for existing shareholders of the group or holding company. If you apply for the IPO in the shareholder category, the likelihood of allotment can be higher since most other applicants apply in the retail category.
Like any investment you make, you can sell the shares you received through IPO Access at any point in time. However, if you sell IPO shares within 30 days of the IPO, it’s considered “flipping” and you may be prevented from participating in IPOs for 60 days.
What is GREY market for IPO?
The grey market, or parallel market, is a place where shares of a company are bought and sold outside the official trading channels. Usually, companies that decide to launch an IPO decide to test waters in the grey market.
Yes, SBI shareholders holding SBI shares as on February 18, 2020 can apply in both categories, provided their application amount in the shareholder category does not exceed 200,000.
You can make an application in both shareholder and retail categories for an IPO (unless specifically disallowed by the company in the Red Herring Prospectus) using the same demat account. However, you can make only one active IPO application by selecting the category you want to apply for through Console.
There are basically two types of shareholders: the common shareholders. There are other terms – such as common share, ordinary share, or voting share – that are equivalent to common stock. and the preferred shareholders. The shares are more senior than common stock but are more junior relative to debt, such as bonds..
Can I apply for IPO from two demat account?
No, one person cannot apply multiple times through multiple applications for an IPO. It’s a rule and if you apply in an IPO though multiple applications with same name or same demat account or same PAN Number, all of your application will be rejected.
How to apply for an IPO under shareholders quota through the Zerodha Console?
- Login to Zerodha Console.
- Click on Portfolio tab.
- Choose ‘IPO’ from the drop-down list.
- Select the IPO you want to invest.
- Enter your UPI ID and verify the details.
- Select the Investor Type as ‘Share Holding Category’
- Put Bid and Price in the box.
A shareholder owns stock or shares in a corporation that issues shares either through a private or public company. A person or entity becomes a shareholder by buying a share or an ownership interest in the company.
The allotment is based on rules set by the Securities and Exchange Board of India (Sebi), the capital market regulator. For example, if an issue is fully subscribed, then the investors are allotted the same number of shares that they had bid for.
How shares are distributed among applicants in the shareholder’s category? Shares are distributed on a proportionate basis in SBI Card IPO shareholders category. The minimum allotment will be 19 shares (1 lot). … The retail investors (shareholders) can apply as much as they want.
Understanding shareholders’ quota in an IPO
Usually when a subsidiary entity floats an IPO, it reserves some portion for the shareholders’ quota of the parent company. There can be an allocation or reservation against this quota depending on the IPO size and it can range between 5-15 percent.