IDBI Bank, Kotak Mahindra Bank (KMB) and Bharat Overseas Bank (BoB), which are the bankers for the ongoing Indraprashtha Gas Ltd (IGL) initial public offering (IPO), have arranged additional manpower to handle the funding documents, and scrutinise application forms.
A group of small players are also active in the market by offering up to 80 per cent of the total application value at higher interest rates. The difference here is loans will be issued on a guarantee from a salaried person.
Another group has also emerged in the market who term themselves as consultants. Hitendra Thakker, who claims to be a finance consultant operating from the Manekchowk area, said, "After witnessing the rush among investors during the IPOs of Maruti Udyog and UCO Bank, I decided to make some money working for retail investors by helping them on documentation to avail of loans from banks. I hope I will be able to do good business from the IPOs expected to hit the market in the first half of next year."
Thakker has also put up advertisements in vernacular dailies to attract investors.
The owner of a small retail loan company based in Sola Road area of Ahmedabad, said, "We offer loans to investors against a guarantor who ideally should be a government employee or working with a reputed firm with a reasonably high salary. We also provide funds up to 80 per cent, depending on the profile of investors. The investors will have to pay a 12 per cent flat interest on the borrowed money for one year. We do not extend the loan beyond one year."
Anil Shah, a broker and secretary of the Ahmedabad Stock and Share Brokers' Association, said,
