AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Snipd AI
Exploring the concept of IPO financing, the role of wealth managers and non-banking financial companies, and recent regulatory actions taken by the RBI against a prominent player in the field.
Read more
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Investors use IPO financing to leverage investments, leading to oversubscription.
- RBI reprimands JM Financial for excessive leverage, governance concerns, and potential regulatory violations.
Deep dives
Rise of IPO Financing and Its Mechanics
IPO financing has become popular due to the desire of investors to leverage their investments by borrowing money. High net worth individuals often subscribe to popular IPOs with funds obtained through these loans, causing massive oversubscription. Entities like wealth managers offer IPO financing by issuing commercial papers to raise short-term funds. Despite the risks, the practice yields high interest rates for lenders while investors face the prospect of paying high interest even without getting IPO allotments.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode