Looked at some options for IPO Financing since couple of issues are over lapping. Learned about ICICI Bank's Loan against Securities scheme. Interest rate is 13.5% p.a. and is charged on a daily basis for actual number of days funds are used. They need you to have minimum Two Lakhs rupees of eligible Shares & with 50% Margin, they fund One Lakh Rupees. The shares are pledged to them & it seems this can be done on-line. The only other expense is Current Account opening - 2k for first year & 1.5k thereafter, plus of course the taxes. This seems pretty good. For a funding of a lakh for two weeks, the interest cost works out to just Rs.563. I am seriously considering to Open the Account so this funding is available on demand. Here is the link on ICICI Bank's website.
I am bit disappointed with the price band announced for Shipping Corporation FPO. But I guess this is more due to current market situations. With large issue size, decent profit should still be possible.
Another disappointing news is development on Lavasa. I am pretty impressed with the first planned city of India. We actually visited Lavasa and stayed there for 2 days to check out Real Estate Investment. We did not go ahead with Real Estate investment for different reasons but I am eagerly looking at their IPO. That said, keeping my profit orientation aside, I sincerely wish that environment concerns be addressed first & all approvals obtained.
We will be applying, but naturally, for Manganese Ore IPO in full retail quota of Two Lakhs in all our accounts.The Indexes continue to go down. So this is a cause of worry.
Regards, Rohit
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