It believes some companies would consider bringing forward their IPO plans, leading to increased IPO pipeline, before the regulation comes into effect in April 1, 2022. Ind-Ra assessed that the current size of IPO market varies based on the oversubscription and size of issuances which could run up to ₹1 crore. It opined the IPO funding opportunity was limited to only select few large NBFCs and this regulation could end up distributing the business among several players. Also, LCR moving to 100 per cent by December 2024 could lead to a rise in the cost of financing, impacting overall participation through the IPO financing market. The agency noted that the months of June, July and August 2021 witnessed increased activity in the IPO market and concomitantly NBFCs were aggressively funding IPOs.

Source: The Hindu October 28, 2021 23:54 UTC