The recent IPO surge in India, featuring Tata Tech, IREDA, and others, amassed a staggering Rs 2.5 lakh crore. Surprisingly, around 25% of High Net Worth Individuals (HNIs) leveraged their bids, totaling Rs 6,200 crore.
This highlights a notable trend of HNIs using leverage to boost their application sizes. Leading financiers like Bajaj Finance and JM Financial facilitated almost 10,000 leveraged HNI applications.
Despite SEBI's rule change to a lottery system, leverage-backed bids continue to play a significant role in IPO subscriptions.