Mumbai [Maharashtra]: SBI Securities is offering to finance as much as 60% of the amount needed to apply for the IPO through its parent State Bank of India, according to its website. Investors can seek funding for applications ranging from Rs 500,000 ($5,300) to Rs 10 lakh, with shares allotted as collateral. Several other firms are also directly approaching clients with financing options, according to people familiar with the matter, who asked not to be identified, discussing private information.
The growing availability of IPO financing highlights the interest among investors in accessing large public offerings, including the anticipated Jio Platforms IPO. However, borrowing to invest in shares carries financial risks, as listing prices may fluctuate and investors could face losses while still being required to repay the loan. Investors should carefully assess the financing costs, repayment terms and risks before applying.
[AIR News]