IPO financing eligibility and documents

A sort of short-term commercial credit taken out to purchase shares on a principal stock market is known as IPO financing. The lender provides the remaining money for IPOs after the investor pays a small margin upfront to obtain the loan amount, which is typically assessed on a case-by-case basis. Additionally, the length of the loan will be influenced by share types and market patterns. For IPO funding, the loan terms typically range from seven days to three months. Although the interest rates imposed on the loans typically vary from lender to lender, they are still typically up to 24% per annum and/or flat interest up to Rs. 30,000 per IPO application till the date of allotment.