Do the investors of the Parent company automatically get the shares of the daughter company in case of IPO on NSE/BSE?
The initial purpose of IPO is to raise funds, so the parent company won’t give this shares automatically as there might be some shareholders who won’t be interested in applying for IPO. So, whenever a subsidiary of any company will launch it’s IPO, they will have certain percentage of shares reserved for shareholders in the shareholders category, any shareholders of parent company wishing to apply for IPO can apply through this category.
Thanks. Is it more likely to get allotment if one is a shareholder of the parent company?
The allotment under the shareholders category is done on proportionate basis, in this case the chances of allotment are high.
You can read the point 18.104.22.168 here to know how the allotment on proportionate basis works.