What happens to IPO funding loan when shares are not allotted?

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In HNI category of investors in an IPO, shares are allocated in proportionate basis in case of over-subscription. Unless the application is rejected by the registrar of the IPO, the HNI investor always get something.

In case not enough shares are allocated to cover the cost of borrowing, the leader takes part of the margin money and investor book the losses.

Topic: IPO Funding in India (IPO Loan Process) Explained Article

1 Comments

1. PANKAJ BANSAL

| Link|September 29, 2022 1:55:04 PMReply

Will the lender charge interest even if no shares are allotted.

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