 "Garden Reach Shipbuilders adds to dull IPO scorecard: All you need to know")
When an initial public offering (IPO) like that of SBI Cards, which is expected to evoke a good response, takes place, expectations of listing day gains run high. High net worth individuals (HNIs) often borrow money from non-banking financial companies (NBFCs) to apply for such IPOs. Such leveraged bets, however, carry high risks that HNIs need to be cognizant of.
If a person’s application is for more than Rs 2 lakh, he falls in the HNI category. Allotments in this category happen as follows: If the HNI portion gets oversubscribed x times, then each HNI is allotted 1/x of what he
