Greater role seen for non-banking lenders in first equity offerings

Likely to be classified as institutional buyers; announcement expected on April 26

Non-banking finance companies investing in initial public offerings of shares may soon enjoy institutional-buyer status reserved for foreign investors and mutual funds. 

Sources say the market regulator is likely to classify NBFCs with net worth more than Rs 500 crore as institutional buyers, in order to give them a greater role to play in IPOs. The potential move is seen benefitting bigger NBFCs such as Shriram Transport Finance Company and Bajaj Finance. 

The announcement will likely be made at the regulator's board meeting scheduled for April 26. This will also be new chairman Ajay Tyagi's first board meeting. Other likely