How to Apply for IPOs in 2025 Like a Pro: Boost Your Allotment with Shareholder Strategy (Hero & HDFC Edition)

HDB Financial Services and Hero Fincorp stepping into the spotlight, retail investors are eager to grab a slice of the action.

Nagarjun

6/16/20254 min read

Illustration of Hero and HDFC IPO concepts with investor icons and digital stock charts.
Illustration of Hero and HDFC IPO concepts with investor icons and digital stock charts.

🚀 IPO Mania 2025: How to Apply Like a Pro & Boost Your Allotment Odds

From boardrooms to brunch tables, IPOs are the new buzzword. With India’s capital markets heating up and marquee names like HDB Financial Services and Hero Fincorp stepping into the spotlight. Here’s the catch - many misses out simply because they don’t follow the right steps.

In this guide, we break down the IPO application process, demystify investor categories, and show you how to improve your allotment chances - especially through the shareholder quota.

📘 What Is an IPO, really?

An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. It’s a gateway for businesses to raise capital and for investors to participate in a company’s growth journey from the ground floor.

There are two types of IPO pricing:

  • Fixed Price: The company sets a predetermined price.

  • Book-Building: Investors bid within a price band, and the final price is decided based on demand.

🧭 Investor Categories: Know Where You Belong

When applying for an IPO, you must choose the correct category:

  1. Retail Individual Investor (RII): Investment up to ₹2 lakh.

  2. High Net-Worth Individual (HNI/NII): Investment above ₹2 lakh.

  3. Qualified Institutional Buyer (QIB): Mutual funds, banks, etc.

  4. Shareholder Category: Reserved for existing shareholders of the parent company—this is where smart investors gain an edge.

🔍 Why the Shareholder Category Is a Hidden Gem

If you hold even one share of the parent company (e.g., HDFC Bank or Hero MotoCorp), you may be eligible to apply under the shareholder quota. This category often has fewer applicants and a reserved portion of shares, which can 2x to 5x your allotment odds compared to the general retail category.

Example: In past IPOs like Aditya Birla Sun Life AMC, shareholder applicants had a noticeably higher allotment rate than retail-only applicants.

🛠️ Step-by-Step: How to Apply for an IPO in 2025

Whether you're a first-timer or a seasoned investor, here’s a simplified roadmap:

1. Open a Demat + Trading Account

You’ll need both to apply. Most brokers offer a 2-in-1 or 3-in-1 account

2. Check the IPO Calendar

Track upcoming IPOs via NSE/BSE websites.

3. Read the RHP (Red Herring Prospectus)

This document outlines the company’s financials, risks, and objectives. It’s your IPO cheat sheet.

4. Choose the Right Category

  • If you’re a shareholder of the parent company, select the “Shareholder” category.

  • Otherwise, apply under “Retail” or “HNI” based on your investment amount.

5. Apply via ASBA or UPI

  • ASBA (Application Supported by Blocked Amount): Funds are blocked in your bank account until allotment.

  • UPI: Quick and mobile-friendly but ensure your UPI ID is linked to your broker.

6. Track Allotment Status

Post-application, check allotment status on the registrar’s website (e.g., Link Intime or KFintech).

🏦 Spotlight: HDB Financial Services IPO

📅 Launch Window: June 25–27, 2025

💰 Issue Size: ₹12,500 crore

  • ₹2,500 crore fresh issue

  • ₹10,000 crore offer-for-sale by HDFC Bank

🔍 Why It Matters:

  • RBI mandates listing of “Upper Layer” NBFCs like HDB by September 2025.

  • Strong brand backing from HDFC Bank.

  • 17.5 million+ customers and 1,772 branches.

📊 Growth Outlook:

  • Focus on enterprise lending, asset finance, and consumer finance.

  • Tech-driven operations and wide reach.

  • Investors will watch asset quality and cost of funds post-listing.

💡 Shareholder Tip:

If you hold HDFC Bank shares, you’re eligible for the shareholder quota - apply using the same PAN and demat account.

🛵 Spotlight: Hero Fincorp IPO

📅 Expected Soon (SEBI Approval Secured)

💰 Issue Size: ₹3,408 crore

  • ₹1,840 crore fresh issue

  • ₹1,568 crore offer-for-sale

🔍 Why It Matters:

  • NBFC arm of Hero MotoCorp, India’s largest two-wheeler manufacturer.

  • Raised ₹260 crore in a pre-IPO round, signalling strong institutional interest.

📊 Growth Outlook:

  • Over 11.8 million customers, including 5 million active retail clients.

  • Diversified loan book across retail, MSME, and corporate finance.

  • 83.3% non-cash collections and AA+ credit rating.

⚠️ Risks:

  • Heavy reliance on Hero MotoCorp dealerships (99% of two-wheeler loans).

  • Sensitive to interest rate fluctuations.

💡 Shareholder Tip:

Hold Hero MotoCorp shares before the record date to qualify for the shareholder quota.

📈 How to Maximize Your Allotment Odds

Here’s a quick checklist to boost your chances:

Apply on Day 1 of the IPO
Use multiple demat accounts (family members)
Apply under the shareholder category if eligible
Avoid last-minute UPI glitches - authorize mandates promptly
Don’t overbid in HNI if oversubscription is high

🧠 Pro Tip: Timing Is Everything

To qualify for the shareholder quota:

  • Buy shares at least 2 trading days before the RHP filing date (T+2 settlement).

  • Ensure shares reflect in your demat account on the record date.

  • Use the same PAN while applying.

🧳 Final Thoughts: Be IPO-Ready, Not IPO-Rushed

IPOs are more than just a hype train—they’re a strategic entry point into high-growth companies. But success lies in preparation. By understanding the process, choosing the right category, and applying smartly, you can turn IPO season into a wealth-building opportunity.

With HDB Financial Services and Hero Fincorp gearing up for their market debut, now’s the time to get your demat account in order, track record dates, and plan your applications like a pro.

Ready to ride the IPO wave? Bookmark this blog, share it with your investing circle, and stay tuned for more updates as these IPOs go live.

Happy Investing – Grow your wealth!!

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