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After building your company to a force to reckon with, you as the promoter of the business, will always want to expand by way of starting new operations, entering new markets and introducing new products. To do this, you may require additional funds. In such a case, Promoter Funding against your shareholding is an excellent way to raise funds immediately.

Why Promoter Funding?

Aditya Birla Finance offers you Promoter Funding as a deft solution to raise funds quickly. Whatever the needs of your business, whether scaling up operations or starting a new ancillary company, it is one of the most reliable business funding options against the shares you own. Thus, it helps you gain the financial wherewithal you require without disrupting your long-term investments.

Your investments in gold and property can be kept out of the ambit of debt when your shares can generate the requisite capital for you. This business financing opportunity against shares generates an instant line of credit. However, the amount of the loan is calculated basis the quality of the stocks or shares you own.

Is Promoter Funding for you?

Promoter Funding is increasingly being used by promoters to grow their business or to increase their stake in the company, as also to convert outstanding securities into equity shares. Promoters may even buy out other investors in the company using the capital raised from promoters’ shareholding.

Promoters who hold adequate numbers of eligible securities (as stipulated by the lending institution) may find it easier to obtain this loan. There is increased transparency in the process of extending this line of credit, with SEBI regulations making it mandatory for promoters to disclose the value of their pledged shares.

Features of ESOP Financing
  • Collateral: Owned shares (from approved list of shares) held by the promoters and holding companies in the promoter group.

  • Tenure: Up to 1 year

  • Minimum Loan Amount: Rs 25 lakh.

  • Loan Margin: 50% and above.

  • Purposes and Intents: This business funding option may be utilised for a new project, for diversification of business into other areas, increasing personal shareholding, or other business purposes to be disclosed.

  • Benefits: Quick turnaround time, TAT-driven processes, utmost confidentiality of transaction.

Next steps…
  • If you own physical shares, you must dematerialise them before you proceed with the Loan Against Shares (LAS)/ Line of Credit (LOC) application.

  • If you want to apply for Promoter Funding.

  • Our Relationship Manager can meet you at your convenience.

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