How to avail IPO Financing
Frequently asked questions
You can apply for IPO Financing by clicking on the 'Apply' button on this 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.
Once your application is submitted, our representative will get in touch with you.
IPO financing works by allowing individuals with limited cash to apply for larger amounts, increasing the chances for a significant share allocation. The loan, offered by entities like Bajaj Finance, can range up to Rs. 1 crore with a repayment period of 3 days to 30 days. The margin money is deposited by subscribing to shares, serving as collateral for the loan. This arrangement facilitates participation in Initial Public Offerings without the immediate need for substantial funds.
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.
Eligibility criteria for IPO (Initial Public Offering) applications can vary. Typically, you need to have a Demat account to apply for an IPO. In many cases, there are no specific income or wealth requirements to apply for an IPO. However, you must have the necessary funds to invest in the IPO shares you're interested in. Specific eligibility criteria and requirements can be provided by the financial institution or brokerage firm you choose to apply through.
The limit of IPO financing, also known as margin funding for IPOs, can vary from one financial institution to another. It depends on your eligibility, creditworthiness, and the policies of the institution providing the financing. Bajaj Finance Limited offers IPO funding to the investors for up to Rs. 1 crore.