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