How to apply for IPO Financing

With merely the provision of margin money, IPO financing enables clients who are short on cash to apply for greater chunks to assure a sizable share allocation.
The minimum loan amount that may be obtained is 1 crore, and the loan term above is 7–15 days. The premise for depositing the margin money is the subscribing of shares.

If you've taken an IPO funding loan and the IPO shares list below the issue price, you may be at risk of facing a margin call. Typically, you'll be required to maintain a minimum loan-to-value ratio on your borrowed funds, and if the share price falls below a certain point, you'll be required to deposit more funds to maintain the ratio. This is because the value of the shares used as collateral for the loan has decreased beyond the agreed-upon margin threshold. It's important to note the risks involved in investing in IPO shares and borrowing money to do so. You should carefully assess the risks and potential rewards before investing in any shares.

Before taking a loan for IPO funding, it's important to note that success in securing IPO shares is not guaranteed. If you're unable to use the funds for the investment opportunity, it's advisable to return the loan amount to avoid additional charges and interest expenses in the terms of loan agreement with Bajaj Finance Limited. It's important to closely monitor your investments and risks when borrowing funds for investing and to assess the suitability of this type of investment before applying for the loan.

An Initial Public Offering (IPO) is the process by which a private company raises funds by issuing shares to the public for the first time. This is usually done by listing the shares on a stock exchange.

By going public, a company can access a wide range of potential investors, including retail and institutional investors, and use the funds raised to invest in research and development, expand production capacity, hire new talent, and drive business growth.

IPO financing is a method of funding for investors who want to purchase the shares of a company during its Initial Public Offering (IPO) but do not have enough funds to do so. IPO financing allows investors to borrow money from a financial institution or bank to purchase shares in an IPO.

The cost of IPO financing depends on the interest rate offered by the lender and the duration of the loan. The loan is secured against the stock purchased with the loan amount.

To apply for IPO financing with Bajaj Finance Limited, click on the ‘Apply’ button on the page. Enter your phone number and verify by entering the OTP sent to your number. Fill in your personal details, type of security, the value of bonds, and submit the form.