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Loan Against Securities
Aditya Birla Finance Limited
IPO Financing
Leverage your securities for easy financial solutions
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Register yourself -
Provide basic documentation
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Get loan disbursal in no time
About the Loan
About the IPO Financing
Investing in IPOs is a rewarding experience for individuals or companies. However, it may so happen that you may not possess the requisite funds to subscribe to IPOs. At this juncture, an inflow of funds from another source may become necessary. One can explore the option of IPO Financing to bridge the deficit between the resources at hand and the funds needed in aggregate.
Why IPO Financing ?
Aditya Birla Finance offers you the opportunity to leverage your own funds in primary markets, thereby increasing the Allotment Quantum Manifold. IPO Financing is an invaluable financial instrument that bridges the gap between required funds and the resources at hand at a pre-defined margin; the customer only needs to pay the margin amount and we fund the remainder. The IPO loan helps you apply for as many shares of the IPO as is possible within the funds now in hand. You also have the flexibility to hold or sell the shares depending on market trends and nature of the securities purchased.Is IPO Financing for you ?
IPO Funding gives you the flexibility to apply for more shares of an IPO. This increases the chance of getting a bigger allotment and hence, higher returns.You can choose to buy shares of the IPO directly from the companies (from the primary market) or from the secondary market, but the former will fetch you securities at a cheaper rate. It is advisable to remember this when you apply for shares of the IPO, before they are oversubscribed.
Once you are allotted some or all of the shares you applied for, the shares are credited to your demat account. Once listed, you can sell the shares to make a profit. If you are not allotted any shares, your invested money is returned within a period of 10 days.
Features of IPO Financing
- Tenure: 7 to 10 days.
- Minimum Loan Amount: Rs 25 lakh.
- Loan Margin: Case-to-Case basis
- Complete guidance offered during application, banking and follow-up process during subscription and listing.
Next steps...
- If you own physical shares, you must dematerialise them before you proceed with the IPO Financing application.
- Do you want complete product details? Download the brochure.
- If you want to apply for LAS/LOC, download the application form.
Do you have questions?
Call +91 1800 270 7000 OR write to us at care.finance@adityabirlacapital.com.IPO Financing FAQ's
IPO financing is a loan provided by financial institutions to investors who wish to participate in an Initial Public Offering but lack sufficient funds. It allows investors to purchase shares during the IPO. The shares serve as collateral until the loan is repaid after the shares are listed and their value increases.
The eligibility criteria for an IPO loan include:
- A good credit history.
- Sufficient collateral.
- Meeting the minimum income requirements set by the loan provider.
Additionally, investors may need to demonstrate their ability to repay the loan within the specified timeframe.
To apply for IPO financing, investors must contact a financial institution or brokerage firm offering such services. They would then fill out an application form and provide proof of identity, income, and collateral details. Once documents are approved, investors can use the financing to participate in the IPO, with the shares purchased serving as collateral for the loan.
The minimum and maximum loan amounts in IPO financing depend on the financial institution's or brokerage firm's policies. Usually, the minimum amount is a few thousand units of local currency. The maximum is a percentage of the IPO share value, subject to borrower creditworthiness and collateral.
To apply for IPO financing, you must provide:
- Identity proof (e.g., passport or driver's license).
- Address proof (e.g., utility bill or bank statement).
- Income proof (e.g., salary slips or income tax returns).
- Details of the IPO you intend to invest in.
- Details of the collateral you plan to pledge (if applicable).
Investing in an IPO offers the chance to buy into a company during its early stages of going public, potentially resulting in significant returns if the company succeeds. It also adds liquidity and diversification to investment portfolios. .
Contact a financial institution or brokerage firm offering IPO financing. Complete an application form and submit necessary documents like proof of identity, income, and collateral details. Upon approval, use the loan to participate in the IPO, with the purchased shares acting as collateral. .
