I had read that some NBFC do provide IPO funding but those products aren’t tailored for retail customers as the minimum amount being lent out is very high (like for example, check this offering) -
Also, in January 2021, RBI has proposed introducing limits on NBFC in regards to IPO financing (Discussion Paper on Revised Regulatory Framework for NBFCs - A Scale-Based Approach) -
The proposed limit (of 1 crore per person) might not have any effect on any potential product offering tailored for retail customers but it seems the regulator is likely worried about such excessive IPO financing. This can be seen from the subscriptions numbers for the HNI category in some of the early-2021 IPOs (taken from the above-referenced BloombergQuint article ) -
Also, a likely problem with such kind of offering is that retail investors have much fewer chances of getting allotment in case of oversubscription compared to the HNI category (whose allotment happens on a proportionate basis, refer to this thread). Even for HNIs that utilize IPO financing, the breakeven point for their investment requires a bumper listing of the IPO (for example, check this tweet sharing a rough breakeven price for the recently listed Shyam Metallics IPO for loans taken at different interest rates).