Open Account

Investment Banking

Fund raising

Our scope of work for Fund raising assignment normally varies from case to case but broadly includes the following:

  • Assisting in preparing Detailed Project Reports as per the requirements of the lending institutions and thereby advising in identifying the total funds requirements.
  • Preparation of the Information Memorandum based on the project reports.
  • Discussing the project / proposal with the various banks & institutions based on their available exposure for a particular sector.
  • Preparation of documents, presentation and represent the Company to the lending institutions / banks etc in the appraisal process.
  • Providing assistance and advising for selection of the most suitable route for raising the funds for the projects and the Company.
  • Negotiating and finalizing the disbursement schedule and terms and conditions acceptable to the Company.
  • Liaison with Company & the lenders for the post sanction procedures and documentation.
  • Assisting the company in negotiating with the lenders even post sanction / disbursement.
Existing Debt Swapping / Takeover for High Cost loans

We have prominent exposure of undertaking Debt swapping assignments.

With regard to Debt Swapping / Debt takeover, our Scope of work shall be broadly as under:

  • Analyzing the existing Loan / Debt Portfolio and find out scope of reduction in the interest cost
  • Fixing the financing options
  • Derive and negotiate the prepayment premium with existing lenders
  • Cost-Benefit Analysis
  • Preparation of the Information Memorandum & Bankable Report to be presented to the new lenders
  • Negotiate the terms with the new lenders
  • Assisting in releasing the charge from existing lenders and in creating new charge in favour of new lenders.
External Commercial Borrowings

For project finance the funds are also raised through External Commercial Borrowings and Foreign Currency Term Loans. The rate of interest is relatively low as compared to Indian Rupee Loan. The loans can be raised in US $, Euro €, Japanese ¥ and Sterling £.

Working Capital Finance

(Corporate Loans Included)

A firm’s working capital is the money it has with it to meet current obligations (those due in less than a year) and to acquire earning assets. Tipsons helps corporates in raising Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit and other similar instruments.

  • Funded facilities, i.e. the bank provides funding and assistance to actually purchase business assets or to meet business expenses.
  • Non-Funded facilities, i.e. the bank can issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, Government Departments for the procurement of goods and services on credit.
  • Available in both Indian as well as Foreign currency.

Types of Working Capital Finance:

Cash Credit

This is a running account facility that is extended for a short period, not more than 12 months and reviewed regularly. Banks normally lend money against the security of stock and debt. In addition, the borrower only has to pay interest on the amount actually utilized by it. In order to repay and close the account, simply deposit the outstanding dues into the account.

Overdraft Facility

Get access to cash immediately as and when required means the act of overdrawing from a Bank account. In addition, the borrower has to pay only the interest on the amount actually utilized by it. In order to pay, simply deposit the outstanding dues into the account.

Pre-shipment Finance/Packing Credit

Short term, pre-shipment financing enables exporters to procure raw materials for the manufacture of finished goods for export. The facility is available both in Indian Rupee and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others.

Post-Shipment Finance

Short term, post sale financing to the exporter to provide liquidity during the credit period permitted to the overseas buyers to make payment. The facility is available both in Indian Rupee and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others.

Buyers Credit

As an importer, one can avail of Buyers Credit facility at very competitive rates. One can make the import payment to its overseas supplier by availing the buyers credit and can repay the lender at a later date. The funding is arranged from the overseas network branches and one can avail of this product in major currencies. Availing Buyers credit would be subject to compliance with the bank’s internal process and policy requirements.

Short term corporate loans

These will be demand loans of less than or upto 12 months’ tenor availed by borrowers to support temporary cash flow mismatches or to avail short-term interest rate arbitrage.

Long Term corporate loans

These will be demand loans of 12 months to 36 months’ tenor availed by borrowers to support long term augmentation of working capital , procurement of certain assets , cash flow mismatches etc

Bank Guarantee

Local and foreign currency Bank Guarantees issued on the behalf of the borrower against specified collaterals for its business needs.

Letters of credit (L/C)

An L/C is a Banker’s undertaking on behalf of a constituent to pay to a third party against compliance of stipulated conditions. This involves irrevocable sight and Issuance L/Cs, back to back L/Cs, Standby L/Cs & Inland & Foreign L/Cs.

Asset Financing

Asset financing aims to meet short-term and long-term financing needs of corporate houses. We help the corporate houses to leverage balance sheet in the optimum manner to raise low cost funds.

Our portfolio of services includes:

Asset Financing

Funding a client for acquiring assets using the asset as collateral. Acquisition funding can also be done in form of bridge financing where in the funding is later sold down to other lenders.

Structured Debt Finance

Finance against specific cash inflow/assets to increase the scope of financing by customizing financing structures as per business needs

Stressed Assets Funding

Turnaround of stressed assets by way of debt financing / hybrid financing structures

Margin Financing

Funding the long term portion of working capital financing.

Our Debt Syndication wing encompasses funding activities for diverse business requirements of corporates. We assist corporates to leverage on debt as an instrument to raise capital through structured financial products for various requirements including Greenfield projects funding, expansions and working capital and in structuring and syndicating funds for acquisitions.

While providing comprehensive services for Debt Syndication, TIPSONS examines all factors of industry, economy and business. We provides support services such as Structuring and critical evaluation of the short, medium or long term financial requirement, Preparation of Financial plans as well as identification of size and type of the debt, arranging sanction of long term loan, facilitating execution of requisite documents and due disbursal of loans, Placement of Debentures, Preference Shares with Investment Institutions, Banks, Mutual Funds and other investors. Also facilitates Corporates in arranging the working capital limits (fund based and Non fund based) from Banks, arranging finance by assignment of debt, cash flow financing against escrow receivables, trade credit financing etc.

Our professionals’ advice is supported by a true understanding of the issues involved and challenges faced by our clients, connectivity with the financial markets, deep sector knowledge and a skilled negotiation prowess.

Team of Tipsons possesses necessary expertise and experience in syndicating debt of a large value and is keen in accepting such assignments in India & abroad.