IPO/NCD Financing (HNI)
Companies often float equity public offerings to raise funds for their needs. Many of these companies promise good prospects in terms of future returns and performance which reflect in their stock prices.
Through IPO financing, we facilitate our client's application for equity shares offered in the IPO by advancing a loan at competitive terms against an upfront loan or stock margin. The documentation is minimal for existing clients and funding is handled in a time bound manner, so as to ensure speedy and timely processing. Mansa Mata Finance gives option to the investors to get the requisite funds needed to subscribe to IPOs/FPOs and NCDs.
For IPO/NCD financing, investors just need to pay upfront only the margin money and the remaining amount will be funded by Mansa Mata Finance. Our IPO financing offering allows clients to participate in the opportunity even with limited personal funds. Once the shares are allotted and listed, you may choose to hold them for long term appreciation or sell them to book the profits on listing, if any.
*IPO = Initial public offer; FPO= Further public offer; OFS = Offer for sale;NCDs = Non-convertible debentures
Features
- For applying in public issues: IPOs/FPOs, OFS, NCDs, Tax-free Bonds
- Pay only nominal margin amount
- Option to deposit margin also in form of your existing Demat securities (instead of cash)
- Funding stays available even after the listing of securities
BENEFITS
- Funding cost comes down significantly because of quick IPO listings and reduced interest rates
- Quick Approval Process
- One-time documentation process for all upcoming issues
- Same account can be also used to avail loan against securities facility
- Attractive and competitive Interest rates
- Investor can apply for more shares, thus increasing chances of a large allotment, especially useful in the HNI category where allotment is on proportionate basis
- Individuals (should be major) or HUF and only companies
- Holder of Valid PAN Card
- Application form
- KYC documents
- Demat Account with POA
- Bank Account with POA
- FATCA Declaration
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What is IPO Financing?
IPO Financing is an investment tool that is used to bridge the gap between required funds and the resources at hand at a pre-defined margin. The customer only requires to pay the margin amount and the balance will be funded by Mansa Mata Finance. -
What is the Tenor of IPO Funding?
IPO Funding loans are short term loans. In most cases they are for 7 days, from the IPO closing day to date of listing of IPO shares. Repayment tenor of these short term loans is up to 3 months. Most lenders offer flexibility to hold or sell the shares depending on market trends and nature of the securities purchased. - What is Margin Money? Margin money is the minimum amount that customer has to deposit to avail the IPO Financing.
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What is POA Bank Account?
It is a Bank Account to be opened with Mansa Mata Finance empanelled bank on which customer creates Power of Attorney in the favour of Mansa Mata Finance. -
Can I/We open the POA Bank Account in any Bank?
No, the POA Bank Account should be opened only in the Mansa Mata Finance's choice of Bank. -
Can I/We operate the POA Bank Account?
No, you cannot operate this POA Bank Account as per your wish, since you have given the operational right to Mansa Mata Finance through POA. This Account is opened specifically for funding purpose only. You will not get cheque book, ATM/Debit Card and other facilities, neither can you withdraw the amount as provided in any normal Current Bank Account. However, you will get a periodical Bank Statement. -
How Can I/We withdraw the amount then? Or repayment be made?
You can withdraw the fund from your POA Bank Account by giving a simple transfer request. On receiving the request, we transfer the requested amount in your other Bank Account mapped with us. -
How much time it takes to receive the amount so requested?
The maximum time taken to transfer the requested money is T+1 working day from the date of receiving the request. Generally, the request is processed within 24 hours of receiving the same. -
I/We have a Demat Account. Can I/We avail the IPO Financing?
For availing IPO Financing, a new Demat Account has to be opened with the DP selected by Mansa Mata Finance. Even if you have an existing Demat Account, this new Demat Account has to be opened.