Last week, four IPOs – PSU financier, Tata company, pen maker, and oil refiner – collected a record Rs 2,50,000 crore in the primary markets. Investors are leveraging their investments to maximize gains on listing day. Don’t miss out on this opportunity to invest in India’s booming primary markets.
Over 62,000 applications, which is 25% of large HNI bidders, were backed by leverage, amounting to Rs 6,200 crore out of the Rs 2.5 lakh crore bids collected by the four mainboard IPOs.
HNIs typically place the maximum leveraged bets. Experts suggest that, for retail investors, the application size being only Rs 2 lakh, attracts fewer creditors.
An industry source has confirmed that the average application size for big NII is around Rs 10 lakh, as most investors do not bid much higher than this amount after SEBI discontinued proportionate allotment in HNI category.
SEBI has replaced the rule of proportionate allotment with a lottery system for oversubscribed bids, preventing HNIs from cornering shares. This promotes fairness and transparency in the allotment process.
HNIs place large leveraged bets while retail investors’ small application size of Rs 2 lakh doesn’t attract many creditors.
