HNIs are actively targeting companies at pre-IPO stage for hefty returns

They can earn super-normal profits, but any delay in the offer would mean a longer holding period

For high networth individuals (HNIs), getting the desired allotment in initial public offers (IPO) has become difficult. In Amber Enterprises India issue, for example, the non-institutional category was subscribed 519.26 times. Consequently, many HNIs are actively looking at other places for hefty returns. One option, which has emerged in recent times, are companies which are planning to go for an initial public offer (IPO) in a few months.

Getting shares in the unlisted companies at the pre-IPO stage means an investor can get a higher number of shares than in an IPO and at a lower price. “To get a higher