HNI's huge rush to NBFC for funding following a series of IPOs

-


MUMBAI: As five companies enter the market to raise Rs 21,000 crore through public offerings within the next fortnight, there has been talk of rushing to non-banking financial companies (NBFCs) to get money from High Networth Individuals (HNIs) investors. Following the rush, interest rates have been hiked by NBFCs.

According to an estimate, NBFCs have set aside Rs 2.5 lakh crore for HNI.

The funding cost has also increased in view of the rush of IPOs. HNIs usually obtain short-term loans from NBFCs to apply for an IPO.

The IPO is also likely to see a massive influx of investors. Public payments are expected to be multiplied in the next fortnight.

In the next fortnight, Nayaka, Fino, Policy Bazar, SIS and Paytm together are coming up with Rs 216 crore.

The current year has seen widespread interest from investors, especially in the retail and HNI primary markets. The boom in the secondary market has made it easier for companies to raise money from the primary market.

HNIs are usually paid at 8 to 10 per cent to apply for an IPO, but there is talk of NBFCs charging an interest rate of 15 to 18 per cent as funding demands increase.

There is no denying that the RBI's decision that NBFCs will not be able to lend more than Rs 1 crore to investors looking to buy shares through an IPO from next financial year is likely to affect IPO lending.

Comments

Post a Comment

Popular posts from this blog

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more

The brokerage firm objected to SEBI's new proposal regarding Algo Trading

-
Image
MUMBAI: Brokerage firms and fintech companies have objected to market regulator SEBI's discussion paper considering all stock trading orders issued through Application Programming Interface (API) as separate trading, saying it could adversely affect the growth of such trading from India. Algo trading is considered to be an automatic buying-selling system based on algorithms. SEBI has recently said in a discussion paper that it would create a framework for regulating Algo trading by retail investors. A senior official of a brokerage firm said that monitoring of Algo trading is a need of the hour, but such an attempt could hamper the growth of Sebi Algo trading. He added that if the suggestions made in the SEBI discussion paper were implemented, it would be difficult for brokers to make the API available. About 70% of the daily trading volume in Indian stock markets is transacted through advanced forms of algo trading. Algo Trading came to India in the year 2006, but then only se...
Read more