Why NII bidders apply on the last day of IPO?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

NII bidders apply on the last day of IPO mainly on account of two reasons:

  • NII bidders generally use IPO Fundingto invest in IPO. Thus, applying on the last day of the issue helps them save on the interest cost.
  • Secondly, NII investors cannot withdraw or lower the size of their bid in terms of quantity of Equity Shares or the Bid Amount at any stage. Thus, they apply at the end when they have a fair idea of the IPO oversubscription figures.


Add a public comment...