Equity and Quasi-Equity Financing

We provide financial solutions to local businesses by becoming a shareholder in their company.

WHAT WE OFFER

FINANCIAL SOLUTIONS

Possibility of investing in your company as from Rs. 500,000 up to Rs. 25,000,000

FINANCIAL INSTRUMENTS

• Quasi Equity through Redeemable Preference Shares

• Equity financing through Ordinary Shares

• Debentures

HOW CAN I APPLY FOR FUNDING?

The application for an equity fund is conducted in four steps. Any entrepreneur who is looking for financing to kickstart or expand his/her business operations is welcome to contact us. The IFCME / SME Equity Fund (SEF) team will evaluate eligibility of all projects before financing

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  • Step 1 - Appraisal

    The entrepreneur makes an initial appointment with the SEF team, where he/she submits the application form, business plan, previous years’ financial statements and KYC documents, amongst others. After the meeting, the entrepreneur’s project is assessed and presented to the Investment Committee/ Board for consideration and decision.

  • Step 2 – Post Board Approval - Documentation

    For approved projects, an offer letter, draft Investment Agreement/ Debenture Subscription Agreement detailing the terms and conditions, and other relevant documents are sent to the applicant.

  • Step 3 – Signature of Investment Agreement/ Debenture Subscription Agreement

    Subject to the agreement of the applicant, a meeting is scheduled by the SEF team for signature of documents. Subsequently, formalities relating to subscription of shares and inscription of charges to be filed with concerned authorities.

  • Step 4 – Monitoring Pre-disbursement Conditions

    The Investee Company has to ensure that pre-disbursement conditions are met. The mechanisms involved in the disbursement of funds, which are carried out in tranches, are as per milestones agreed with the client.

  • Step 5 – Post Disbursement Conditions & Monitoring

    The Investee company is required to meet all conditions subsequent as per the Investment Agreement/ Debenture Subscription Agreement. The SEF team monitors the progress of the project through regular site visits and regular communication with the Director/ shareholder of the Company. The companies are required to submit quarterly accounts amongst others and ensure that their financial obligations are honoured towards SME Equity Fund.