The three main factors that decide the feasibility to invest in Nexus Select Trust REIT using the IPO funding route.
IPO Subscription Rate - This is one of the most critical factors that help decide whether an HNI should opt for a loan or not. The higher the subscription, the lower is the allotment. In the case of lesser allotment in IPO, selling that small chunk may not cover the entire funding cost and thus reduce the chances of earning profits.
IPO Listing Price - If the IPO listing is expected at a good premium, taking an IPO loan should not be a burden as selling the shares on listing would earn handsome profit to cover the funding interest cost and the IPO price.
IPO Funding Rate - Generally, IPO funding is available at around 7%-10%. The above IPO funding cost table shows an estimated cost that can help you arrive at the break-even point to assess the probability of earning profit based on the expected listing price and over subscription.