IPO funding procedure
Now here’s how you actually take a loan to purchase shares in an IPO. You must first choose your financer (the lending bank) according to your loan requirements. You will then be asked to open a savings and a demat account with the bank that is financing you as your loan amount will be routed through this bank account and your shares will be deposited in the demat account that you open, until your loan is repaid. Along with the duly filled in loan document, you will have to submit your IPO application form and a cheque for the margin money, the interest amount due on the loan until the issue closes and processing charges. Then the bank will apply for shares in the IPO on your behalf.
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