Under Promoter Funding facility the promoters of listed companies can pledge their shares to to get loans 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. Continue reading Promoter Share Pledging for Business Loans Financing →