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 usua