Business Standard

New funding mechanism takes wing for HNIs bidding Rs 2-10 lakh in an IPO

Under the new mechanism, non-banking finance companies (NBFCs) are providing up to Rs 8 lakh on a margin amount of Rs 2 lakh for a flat fee of Rs 2,000, said industry sources.


Industry players said that the new funding mechanism is fairly new and it will gain popularity once the IPO market opens up fully.

Sundar SethuramanSamie Modak Mumbai
A new funding mechanism for just-concluded initial public offerings (IPOs) has come to fruition. Under this structure, non-banking financial companies (NBFCs) will provide up to Rs 8 lakh on a Rs 2-lakh margin for a flat fee of Rs 2,000, inform industry sources.

Using the borrowed sum and Rs 2 lakh of their own, individual investors can apply to the freshly-minted category for high networth individuals (HNIs).

This new segment is a sub-category within the HNI quota for placing bids between Rs 2 lakh and Rs 10 lakh in an IPO.

“By availing of the new IPO funding, individual investors

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First Published: Sep 27 2022 | 8:05 PM IST

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