Under the shareholder quota, an eligible investor can bid for a minimum of 6 shares and a maximum of 90 shares, which amounts to Rs 12,990 to Rs 1,94,850 at the upper band of Rs 2,165. Bids must be made in multiples of 6 shares. If a shareholder applies for more than 90 shares under this category, the application may be rejected.
How to increase the chances of assignment
A shareholder reservation and a retail/HNI category operate independently of each other. An applicant can submit two bids at the same time. First, under the shareholder reservation section of ICICI Bank, they can bid for up to 90 shares. Secondly, they can also bid as a retail investor (up to Rs 2 lakh), or as sNII or bNII if the amount is above Rs 2 lakh. Requests in both categories will be processed separately and will not be considered as duplicate bids.
Shareholder bids up to Rs 2 lakh can avail the cut-off price option. Bidding by the deadline increases the chances because it ensures that the request remains valid regardless of the final prices within the range. Joint account holders are eligible as long as the first demat account holder is the registered shareholder of ICICI Bank.
For those who want to maximize the allocation probability, the right combination is important. In an IPO that is in high demand, the shareholder quota can provide an advantage as the pool is smaller and limited only to ICICI Bank shareholders.
A typical strategy involves placing one application under the shareholder category and another under the retail category, each up to Rs 2 lakh. This essentially gives two independent opportunities in two different allocation pools.
Households with multiple demat accounts can further refine this by ensuring that the ICICI Bank shareholding is in the name of the first holder of all eligible accounts. Each demat account can then submit a separate bid for the shareholder category, as long as the first holder is the eligible shareholder.In addition, each account can also place a small bid independently. This multiplies the number of valid requests without breaking duplication rules.
Large investors can apply in parallel under the shareholder and sNII/bNII categories. A shareholder class application can be combined with a sNII offer between Rs 2 lakh and Rs 10 lakh or a bNII offer above that threshold.
Since the shareholder quota limits individual applications to Rs 2 lakh, any larger allocation attempt will have to be routed through the HNI categories. These higher categories have a proportional allocation, so the size of the bids matters: larger bids increase the effective allocation in relation to the total demand from investors in that category.
The IPO rules state that shareholders of ICICI Bank must have a valid PAN and updated details. Those with a demat account linked to ICICI Bank’s register must accurately reflect their shareholder status from December 5. Applications may be rejected if PAN is not validated, if multiple applications violate category limits, or if bids exceed the maximum of 90 shares for the shareholder category.
The offer itself is entirely an offer to sell, meaning there will be no change in share capital. The offer is expected on December 19, with refunds and demat credits scheduled for December 18.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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