IPO Financing FAQs

Know the answers to all common questions related to IPO financing.

Frequently asked questions 

What is IPO financing?

IPO financing is a loan that enables investors to invest more in an IPO. Once the shares are allotted, the investor must repay the loan.

Is IPO Financing Secured or unsecured?

IPO financing is a secured loan where the shares applied for in the IPO serve as collateral for the lender. The lender has full right over the allotted shares. If the proceeds after the sale is not enough to repay the loan, the borrower is liable to make up for the shortfall. In these cases, the borrower is personally responsible for repaying the loan amount.

What does the regulatory framework states about IPO Financing?

The SBR stipulates a ceiling limit of Rs. 1 Crore per borrower in case of IPO financing by NBFCs.

  • Lender should be an NBFC
  • The funds should be lent for IPO financing
  • The ceiling limit is Rs. 1 Crore
  • The limit is applicable per borrower
What is a tenure for IPO Funding?

Typically, the IPO funding is provided for a short duration i.e 3 days to 30 days.

How can I apply for IPO financing?

You can apply for IPO Financing by clicking on the ‘Apply’ button on this page.  Fill in your personal details, and the value of your shares. Accordingly verify your details through an OTP.

How does IPO financing work?

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 maximum loan amount that may be obtained is 1 crore, and the loan term above is 3 days to 30 days. The premise for depositing the margin money is the subscribing of shares.

What are the eligibility criteria to apply for IPO financing?

The eligibility criteria for IPO financing with Bajaj Finance are:

  • Individuals (should not be a minor)/ HUF/ Corporate / LLP.
  • Holder of Valid Pan Card
  • Demat Account with Power of Attorney (POA)
  • Bank Account with POA
  • Loan account with BFL
How to apply for IPO financing?

To apply for IPO financing, 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.
Once your application is submitted, our representative will get in touch with you.

What are the minimum and maximum amounts that can be borrowed through IPO financing?

Through the IPO financing by Bajaj Finance, you can get a pre assigned loan of up to Rs. 1 crore.

What documents are required to apply for IPO financing?

The documents required to apply for IPO financing with Bajaj Finance are:

  • Any KYC document: Aadhaar Card Passport/ Driving license/ Voter ID
  • Net Worth (CA certified) or last 5 years ITR returns
What is the interest and fees on a loan?

For IPO Financing, Bajaj Finance offers interest rate of up to 24% per annum and/or flat interest up to Rs. 30,000 per IPO application till the date of allotment.
Apart from that there are other fees applicable. Common fees include processing fees, part-prepayment fee, foreclosure charges and many more.  These fees are typically charged upfront or deducted from the loan amount and can add to the total cost of the loan.

Is there an origination fee or processing fee charged when applying for IPO Financing?

Yes, Bajaj Finance charges a processing fee of up to 4.72% (inclusive of applicable taxes) on IPO Financing.

What are the fees and charges associated with IPO Financing?

The fees and charges associated with IPO Financing are mentioned above. It's important to carefully consider the interest rate and any fees associated with a loan before accepting it to understand the full cost of borrowing and ensure that the terms are reasonable and affordable.

What are the features of IPO financing?

The features of IPO financing by Bajaj Finance are:

  • Loan of up to Rs. 1 crore
  • Non-cash margin
  • Convenient tenure from 3 days to 30 days.
  • No hidden charges
  • Minimal documentation
  • Competitive interest rates
  • Dedicated customer portal- My Account
What are the benefits of IPO financing?

The benefits of IPO financing are:

  • Turnaround times are quick.
  • Attractive margins
  • Easy process & documentation
  • For all forthcoming concerns, a single documentation approach is used.
  • Interest rates that are appealing.
  • Increased likelihood of receiving a larger allocation.
Show More Show Less