PROMOTER FUNDING

WHO IS A PROMOTER?

Is a person or persons who combine all the factors of production, to promote a venture. With the help of his skill , knowledge, experience, foresight, thoughts and plan promoter can give birth to any venture. Any venture requires the factors of production land, labour, capital and entrepreneurship. An entrepreneur or promoter of the company, combines the other three factors of production for earning wealth.

A promoter acts as an initiator, director, advisor, administrator, leader and researcher. A promoter is the beginner of a business enterprise. A promoter is a creator of new thoughts and ideas. A promoter invents new subjects, creates new possibilities in the business, discovers new areas, etc. A promoter takes necessary steps, from planning to set up a new business up to the commencement of a business.

WHAT IS PROMOTER FUNDING?

The Promoter funding is a product offered to promoter of the companies against their share holding in their respective company. With this the promoter can increase his share holding or use in expansion and diversification of his business.

Under Promoter Funding facility the promoters of listed companies can avail a loan against the pledged of their equities to enable them to meet their fund requirements. Promoter loans against shares is an instant line of credit and interest is charged only on the amount utilized.

Another benefit of loan against shares is that owners do not have to liquidate their holdings to meet short-term cash requirements. The facility is increasingly used by promoters to hike their stake via the creeping acquisition route, convert outstanding warrants into equity shares, buy out other investors/ PE funds, meet company’s short term borrowing requirements etc.

WHAT IS PROMOTER FUNDING?

The Promoter funding is a product offered to promoter of the companies against their share holding in their respective company. With this the promoter can increase his share holding or use in expansion and diversification of his business.

Under Promoter Funding facility the promoters of listed companies can avail a loan against the pledged of their equities to enable them to meet their fund requirements. Promoter loans against shares is an instant line of credit and interest is charged only on the amount utilized.

Another benefit of loan against shares is that owners do not have to liquidate their holdings to meet short-term cash requirements. The facility is increasingly used by promoters to hike their stake via the creeping acquisition route, convert outstanding warrants into equity shares, buy out other investors/ PE funds, meet company’s short term borrowing requirements etc.