Hi Fellow Traders,
IPOs are back and the listing gains are so tempting.
Coming to the point, Id like to know about IPO Financing.
I understand that many banks offer IPO loans, provided 50% margin is brought in by the investor.
Lets say, I apply for a IPO worth Rs.1 lakh. I contribute 50% amount and the bank contributes another 50%. Assume, I was allotted IPO fully.
Now, as Ive taken IPO loan, I will have to pledge the shares to the Bank.
So, my query is, if I pledge the shares, Will I be able to sell the stock (in case I make listing gains) ????
As the Shares are pledged in the Banks own demat a/c and not all banks provide their trading platform, how do I sell the shares to capture listing gains??
Which brokerage houses provide IPO financing with little or no documentation??
In case I decide to close the IPO loan, do Ive to pay the bank in cash or can I ask them to liquidate the shares and adjust the loan amount and return the balance ??
What are the banks providing demat a/c and own trading platform ??
Thanks
Sangfroid
IPOs are back and the listing gains are so tempting.
Coming to the point, Id like to know about IPO Financing.
I understand that many banks offer IPO loans, provided 50% margin is brought in by the investor.
Lets say, I apply for a IPO worth Rs.1 lakh. I contribute 50% amount and the bank contributes another 50%. Assume, I was allotted IPO fully.
Now, as Ive taken IPO loan, I will have to pledge the shares to the Bank.
So, my query is, if I pledge the shares, Will I be able to sell the stock (in case I make listing gains) ????
As the Shares are pledged in the Banks own demat a/c and not all banks provide their trading platform, how do I sell the shares to capture listing gains??
Which brokerage houses provide IPO financing with little or no documentation??
In case I decide to close the IPO loan, do Ive to pay the bank in cash or can I ask them to liquidate the shares and adjust the loan amount and return the balance ??
What are the banks providing demat a/c and own trading platform ??
Thanks
Sangfroid