THE PATH TO MULTIBAGGER RETURNS

Easy Money for HNIs…

▶ Start point is the HNI portion size of an IPO

▶ Market intel is gathered on likely demand

▶ HNIs need to only provide a small margin for availing finance

▶ Quantum of margin, rate of interest based on expected HNI demand

▶ NBFCs issue commercial paper to raise funds

▶ HNIs submit bids on the last day of IPO and sell allotted shares on listing day; borrowed funds returned to NBFCs

…and for NBFCs, too!

▶ IPO financing typically done at around 9 per cent per annum

▶ Cost of CP (commercial paper) issued to raise funds for IPO finance around 4-5.5 per cent per annum

▶ The spread is assured income for NBFCs

▶ Margin money is collected from HNIs before financing

▶ Interest on margin is also pocketed by NBFCs

▶ Each IPO financing cycle lasts only around 7-9 days