Who is eligible to apply under the employee quota in an IPO?

Employees on the payroll of the company as of the date of filing the RHP are eligible to apply. Many IPOs extend the employee reservation to employees of the company’s subsidiaries or group companies.

Non-promoter directors can usually apply under this category. Eligibility criteria are always mentioned in the IPO prospectus.

In some cases, it may also extend to part-time directors or employees of companies whose financial statements are combined with the issuing company, provided they are considered material employees.

Promoters & Promoter Group, Contract workers, interns, consultants, advisors, or third-party vendors are not treated as company employees for IPO reservation.