Private placement and secured arrangements in Chennai
Private placement arranging secured
Having 4 decades plus relationship with a set of HNIs, Trusts, and other bodies of investors, able to bring funds to the tune of Rs1 core to 50 crores plus- in a short span of time, say 2-3 weeks, on attractive terms, easy, simple ways & processing methods for both funds raisers and investors Thro: Roadshows, webinars, zoom, one-on-one meetings & other modes of meeting
Here's a breakdown of what secured private placement entails
In secured private placement, the securities being offered come with collateral or security backing them. This collateral can be in the form of specific assets, such as real estate, equipment, or accounts receivable, that the issuer pledges to the investors. This collateral provides assurance to investors that their investment is backed by tangible assets, reducing the risk associated with the investment.
Investor Selection
The issuer, often a corporation or entity seeking to raise capital, carefully selects a group of investors to participate in the private placement. These investors are typically institutions like insurance companies, pension funds, or wealthy individuals who meet specific criteria set by the issuer.
Due Diligence
Before proceeding with the placement, thorough due diligence is conducted by both the issuer and potential investors. This process includes reviewing the financial health of the issuer, evaluating the quality and value of the collateral, and assessing the terms and conditions of the offering.
Negotiation of Terms
The issuer and investors negotiate the terms of the private placement, including the interest rate or yield on the securities, maturity date, covenants, and details related to the collateral. These negotiations aim to strike a balance between the issuer's funding needs and the investors' desire for favorable terms.
Documentation
Legal and financial documents are prepared to formalize the private placement. These documents include the offering memorandum, subscription agreement, security agreement, and any necessary regulatory filings.
Regulatory Compliance
Private placements are subject to regulatory requirements, which may vary depending on the jurisdiction and the type of securities being issued. Compliance with securities laws and regulations is essential throughout the process.
Closing and Funding
Once all terms are agreed upon, and regulatory approvals are obtained, the private placement is closed, and funds are transferred from the investors to the issuer. The issuer then issues the securities to the investors.
Interest and Repayment
The issuer is responsible for making interest payments to investors at agreed-upon intervals. If the securities have a maturity date, the issuer must repay the principal amount when the securities mature.
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