Top parent companies and their subsidiaries are preparing for upcoming IPOs (Initial Public Offerings), offering shares to the public for the first time. This provides investors with opportunities to invest in new companies, expanding their portfolios.
Here’s a list of the top Upcoming IPOs Under the Parent Company:
| Subsidiary Company | Parent Company |
| JSW Cement | JSW Group |
| Kalpataru | Kalpataru Power Transmission |
| Unimech Aerospace | Unimech Group |
| Avanse Financial Services | Deny Group |
| Asianet Satellite Communications | Asianet Group |
| EbixCash | Ebix Inc. |
| Keventers Agro Limited | Keventers |
| Penna Cement | Penna Cement Industries Ltd. |
| VLCC Healthcare | VLCC Health Care Ltd. |
Content:
Introduction To Upcoming IPOs Under Parent Company
JSW Cement
JSW Cement Limited, India’s largest manufacturer of GGBS, leads the market with its eco-friendly cement products like GGBS, PSC, and PCC. The company maintains a low clinker-to-cement ratio, driving its commitment to sustainability in the construction industry.
Founded in 2009, JSW Cement has expanded its presence across India and the UAE. With multiple plants strategically located near limestone mines and steel plants, the company ensures cost-effective raw material sourcing and efficient distribution, supported by strong road and rail connectivity to key markets.
Kalpataru
Kalpataru Limited is a prominent real estate developer in the MMR region, with 113 completed projects spanning 24.10 million square feet across cities like Mumbai, Thane, Pune, Hyderabad, and Bengaluru. The company’s brand stands for trust and quality.
Specializing in luxury, premium, and mid-income real estate, Kalpataru Limited focuses on residential, commercial, and retail developments. The company operates with a strategic asset-light model, utilizing redevelopment, joint ventures, and joint development agreements (JDA) to enhance growth and expansion.
Unimech Aerospace
Unimech Aerospace and Manufacturing Limited specializes in high-precision engineering solutions for the aerospace, defense, energy, and semiconductor sectors. The company delivers complex tooling, assemblies, and components to global OEMs and their approved licensees, ensuring exceptional quality and reliability.
Focusing on “high-mix, low-volume” manufacturing, Unimech Aerospace has produced 2,980 SKUs between 2022 and 2024. Compliant with AS9100D and ISO 9001:2015 standards, it serves over 26 clients across seven countries, offering tailored solutions through advanced software and skilled engineering in “build to print” and “build to specifications.”
Avanse Financial Services
Avanse Financial Services, India’s second-largest education-focused NBFC by assets, offers a comprehensive range of education financing products. These include student loans for both domestic and international education, as well as infrastructure loans for private educational institutions.
With a pan-India presence, Avanse Financial Services uses a hybrid network of branches, digital channels, education counselors, and DSAs to provide accessible financial support. The company ensures flexible repayment options and fast processing, helping students and institutions across India with their education and infrastructure financing needs.
Asianet Satellite Communications
Asianet, established in 1992, is a leading internet service provider and multi-system operator (MSO) in southern India, primarily in Kerala. With a 19% market share in fixed broadband, it ranks among the top three providers in the region.
The company operates broadband and digital cable television services through its wholly-owned subsidiary, Asianet Digital Networks Pvt. Ltd. Building on its strong foundation in cable network services, Asianet expanded into broadband in 2000, further strengthening its presence across Kerala and other southern states.
EbixCash
EbixCash is a technology-driven provider of digital products and services across the B2C and B2B sectors. It operates in payment solutions, travel, financial technologies, and BPO services, serving both domestic and international markets in over 75 countries.
The company offers a wide range of products, including money remittance, foreign exchange, utility payments, and financial SaaS solutions. EbixCash is recognized for its leadership in private banking and wealth management, ranked No.1 in India and No.4 globally in the IBS Sales League Table 2021.
Keventers Agro Limited
Keventer Agro, headquartered in Kolkata, is a leading FMCG company with a robust presence in the food sector. Its extensive distribution network, comprising 3,126 distributors, services 160,000-170,000 retail touchpoints across multiple states in India.
While rooted in Eastern India, Keventer Agro is expanding into northern states like Rajasthan, Punjab, and Uttar Pradesh. The company has experienced significant growth, achieving an 18.46% CAGR over the past decade, with traditional sales channels contributing 92.5% of its total sales.
Penna Cement
Penna Cement Industries Limited, established in 1991, is a prominent cement company based in Hyderabad. It is one of the largest privately held cement manufacturers in India, with a strong presence in the southern and western regions.
The company operates four integrated manufacturing facilities and two grinding units across Telangana, Andhra Pradesh, and Maharashtra. Penna Cement’s aggregate capacity was 10 million tonnes per annum (mmtpa) in 2021, with plans to expand to 16.5 mmtpa by FY24.
VLCC Healthcare
VLCC Healthcare, founded by Vandana Luthra in 1989, began as a beauty and slimming center in New Delhi and has expanded into a global leader in beauty, wellness, and weight management services with over 330 centers worldwide.
The company offers a range of services including facials, body treatments, hair care, weight management programs, and nutrition counseling. VLCC’s product portfolio includes skincare, hair care, and nutritional supplements, with a primary focus on empowering women and expanding its customer base to include men.
What Are Parent Companies?
Parent companies are corporations that own or control other companies, known as subsidiaries, through majority stock ownership or other means. They often manage their subsidiaries strategically, ensuring alignment with their goals while benefiting from shared resources and expertise.
A parent company can have multiple subsidiaries in various industries, allowing diversification of its business portfolio. The parent typically oversees major decisions, financial management, and corporate governance, while subsidiaries operate with a degree of independence, focusing on their respective markets or sectors.
Eligibility Criteria For Shareholder Quota
The eligibility criteria for shareholder quota in an Initial Public Offering (IPO) typically include:
- Demat Account Requirement: Shareholders must hold the parent company’s shares in a valid Demat account as of the record date. The shares must usually be held before the IPO announcement to qualify for the shareholder quota.
- Minimum Shareholding: Investors must meet the minimum number of shares required to qualify for the shareholder quota. This threshold varies depending on the company’s criteria.
- Eligibility Based on Ownership: The investor must be a registered shareholder of the parent company or its subsidiary on the record date, ensuring they are eligible to apply under the shareholder quota.
- Retail vs. Non-Retail: Shareholders applying under the quota typically must be retail investors, as defined by the Securities and Exchange Board of India (SEBI), meaning their investments fall within a specified financial limit.
- Other Criteria: Specific companies may set additional requirements, such as a lock-in period or a certain number of shares held in the past year.
Why Do Companies Come Up with a Shareholder Quota?
Companies introduce a shareholder quota in an IPO to reward existing investors for their loyalty. This allows them to prioritize those who have supported the company by holding shares, offering them preferential access to the new shares being offered.
By setting up a shareholder quota, companies can also build stronger relationships with their current shareholder base. It encourages long-term investment, boosting confidence among existing investors while also increasing demand for the IPO, ensuring a successful public offering, and generating positive market sentiment.
Benefits of Shareholder Quota
The main benefit of the shareholder quota is that it offers existing investors exclusive access to IPO shares, allowing them to benefit from early-stage growth. It also strengthens investor loyalty and boosts the company’s market reputation, fostering a positive investment environment.
- Exclusive Access: Shareholders get priority access to IPO shares, increasing their chances of acquiring stocks at the offer price before the market price fluctuates post-listing.
- Increased Loyalty: Rewarding long-term investors with IPO shares fosters trust and encourages continued investment in the company, strengthening investor relationships.
- Improved Market Sentiment: A shareholder quota often leads to higher demand and interest in the IPO, boosting the company’s reputation and ensuring a smoother market entry.
- Financial Benefit: Investors can potentially profit from the appreciation in the stock price after the IPO, gaining an advantage over non-shareholders who may have to buy shares at a premium later.
How to Invest In Upcoming IPOs Under Parent Company?
To start Invest In Upcoming IPOs Under the Parent Company, follow these simple steps to begin your investment journey:
- Open a Demat and Trading Account: Choose a brokerage platform like Alice Blue and complete your KYC.
- Deposit Funds: Add money to your trading account to begin investing.
- Research the Market: Study stocks, indices, and trading strategies to make informed decisions.
- Place Trades: Log in to Alice Blue, select stocks, and execute buy or sell orders.
- Track and Learn: Monitor your investments and improve strategies using Alice Blue’s analytics tools.
Upcoming IPO and Their Parent Company – FAQs
Parent companies are corporations that own or control other companies, known as subsidiaries, through majority stock ownership or other means. They manage the operations and strategic decisions of their subsidiaries while benefiting from shared resources and expanded business portfolios.
An example of a parent company and its subsidiaries is ONGC. Its subsidiaries include MRPL (Mangalore Refinery), ONGC Videsh (overseas exploration), and HPCL (Hindustan Petroleum), focusing on oil exploration, refining, and distribution.
Investing in the parent company offers diversified exposure to multiple sectors, while investing in the subsidiary may provide higher growth potential in a specific market. Consider both options based on your risk tolerance, investment goals, and the company’s growth prospects.
Yes, parent companies can benefit from tax advantages when spinning off subsidiaries, such as potential tax deferrals on capital gains and increased flexibility in managing tax liabilities. However, the specifics depend on local tax laws and the structure of the spin-off.
Yes, parent companies often retain partial ownership in their subsidiaries after an IPO. While they may sell a portion of their stake to the public, they typically keep a controlling or significant minority interest to maintain influence and oversight.
Upcoming parent company IPOs include:
#1 JSW Cement (JSW Group)
#2 Kalpataru (Kalpataru Power Transmission)
#3 Unimech Aerospace (Unimech Group)
#4 Avanse Financial Services (Deny Group)
#5 Asianet Satellite Communications (Asianet Group)
Yes, a private company can have subsidiaries. It can own and control other companies, just like a public company. Subsidiaries allow private companies to diversify operations, enter new markets, and manage risks more effectively while maintaining control.
Yes, a subsidiary can have two parent companies in a structure known as a joint venture. In this case, both parent companies share ownership, control, and profits of the subsidiary, often to leverage combined resources and expertise.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
