How does shareholder quota work in IPO?

The shareholder quota in an Initial Public Offering (IPO) is a reservation of shares specifically for the existing shareholders of the company going public or its parent company. It's a way for the company to reward loyal investors and encourage their participation in the IPO. Here's how it generally works:

• To be eligible for the shareholder quota, you typically need to be a registered shareholder of the company or its parent company on a specific record date announced before the IPO.
• Eligible shareholders need to apply under a separate category, often indicated in the IPO application form.
• The allotment of shares under the shareholder quota is similar to the retail category.