Demand for IPO financing to stay buoyant amid strong pipeline

Wealthy investors could borrow up to Rs 70,000 cr per issue to apply for good large-sized IPOs: Icra

The demand for initial public offering (IPO) financing is expected to remain buoyant amid a strong issue pipeline. According to Icra, wealthy investors could borrow up to Rs 70,000 crore per issue to apply for good large-sized IPOs. Currently, the average demand is between Rs 17,500 crore and Rs 22,500 crore per IPO.

Typically, high net worth individuals (HNIs) make leveraged bets in IPOs to make listing-day gains. As the HNI portion of an IPO with high investor interest sees huge demand, investors have to make a big-ticket application in order to increase the chances of allotment. Non-banking finance companies (NBFCs)