External Commercial Borrowing (ECB) & Equity Investment

External Commercial Borrowing as Indian companies are allowed to access funds from abroad refers to ECB & Equity.

We as Absolute Consortium Private Limited Collaborated with Foreign Caps Management Companies, Abroad Financial Institutions and NRI Corporate Investors for Processing ECB & Equity Solutions to Promising Indian Companies Especially in Consumer Space. Following are Preferred Sectors for our Esteemed Investors.

Preferred Sectors
Aviation and Shipping Energy and Power Generation
Consumer Durables and Home Appliances Mines and Minerals
Retail and FMCG Sponge Iron / Steel / Copper / Aluminum
Educational Institutions Food Industry
Hospitals and Research Centers Star Hotels and Resorts
Infrastructure and Real Estate Pharmaceutical
Diamond and Gold Jewelers Automobile Manufacturer
Water Treatment and Preservation Companies Furniture and Fixtures Companies
Electrical Instrument Goods Manufacturer Media and Advertising Companies
Craft Paper/ Corrugated Boxes/ Writing paper Companies 24 Carat Gold/ Platinum Jwellery
Leather & Fashion Cosmetics Financial Services
Organic & Agro Products Companies Chemical/ Gas/ Oil Manufacturing Companies

Note : Above sectors are Preferred Sectors for our Proposed Lending & Investment Institution Subject to Process under Specific Approval Route of RBI or by Automatic Route after Complete Assessment of Client Company.

Eligibility criteria for Applying Equity Inception

Techno –Economic Feasibility The Company must be financially viable & technically feasible
ROI Project / Company must have minimum ROI 10%
Asset Line (Charged Free) Equipment As per the Requirement of funding

Equity Inception Major Points

Nature of Investment Foreign Direct Equity Investment Asset Based Valuation (Net worth) Way
Volume USD 1 Million to 750 Million
Loyalty Premium in Exit
  • Exit Before Three Years of Equity Inception 20% Loyalty Premium of Equity Invested. With Three Month Notice Period.
  • Exit After Three Years of Equity Inception 30% Loyalty Premium of Equity Invested. With Three Month Notice Period.
  • Regular Exit After 5 Years of Equity Inception by Public Issue or Replacement with Another Investor.
Period Maximum 3 Years or Maximum 10 Years
Actual As per Assessment of Client Company.
Security Equity Shares / Preference Shares in favor of Investor or Foreign Fund House
Means of Equity
Inception
Promoters Ratio of Investment 50% in Project.
Foreign Direct Equity Investment up to 50% in Project / Company.

Eligibility criteria for Applying External Commercial Borrowing

Techno –Economic Feasibility The Company must be financially viable & technically feasible
ROI Project / Company must have minimum ROI 10%
Asset Line (Charged Free) Equipment As per the Requirement of funding
Existing Debt Equity Ratio 4:1 Maximum
LTV 80%

External Commercial Borrowing Processing Proposal Details

Nature of Funding Project Finance / Working Capital Finance Asset Based Debt Way.
Volume USD 1 Million to USD 750 Million.
Interest Maximum 6 Months Libor + 350 Basis Points. Per Annum. (Subject to Final Assessment)
Period 7 Years Can be Extended to Maximum 15 Years Actual As per cash flow submitted by Client.
Security / Collateral LTV 80% in case of Asset Based Debt. Corporate Guarantee in favor of Lending Company. Secured Debentures / Bonds / Promissory Notes of Specified LTV Ratio in favor of Lending Company.
Means of finance Promoters Ratio of Investment Minimum 25 % to Maximum No Limits in Project / Company. Market Accurals / Equity Accruals Minimum No Limit To Maximum No Limit in Project Company During Inception.
ECB / Asset Based Debt will be 80% Maximum to Total Project Cost.

Commission (ECB)

The client Company has specifically agree to pay Consulting charges of 4% (Four Percent plus taxes as applicable) of sanctioned restructuring and expansions value of ECB with Company to Absolute Consortium Private Limited. Company is specifically agreed and confirmed for consulting charges and same may be disbursed to Absolute Consortium Private Limited once ECB is sanctioned and Disbursed by Lender or Financial Institution.

Commission (Equity)

The client Company has specifically agree to pay Consulting charges of 5% (Five Percent plus taxes as applicable) of sanctioned restructuring and expansions value of ECB or Equity Investment with Company to Absolute Consortium Private Limited. Company is specifically agreed and confirmed for consulting charges and same may be disbursed to Absolute Consortium Private Limited once ECB or Equity is sanctioned and Disbursed by Lender or Financial Institution.

Consulting Fees

The Initial Consulting Registration Fees of 18,000 USD To 40,000 USD (Depending on the Structure of case)charged to the Company for Strategic Consulting of Specified Finance Options & to Execute the same from Respective Financial Institution or NRI Private Investor, Lender on the Basis of Consulting Advisory Term ship Provided by Absolute Consortium Private Limited to Client against Requirement.

ECB & Equity Processing Details

Project Based Debt & Equity From External Commercial Cap Management Company for Above Specified Preferred Sector Funding in India. As per Primary Assessment, We would like to focus on Following Steps to make it Happen on Fast Note.

Financial Advisory Term Ship to be Signed. First Day of Proposal
Company Site visit to be Done with Due Diligence Report. Within 3 Working Days from Proposal Signing
Required Technical & Financial Documents for ECB to be Prepared Up to 20 Working Days from Proposal Signing
Search and Valuation of Specified Free Asset Line Against Security to be Given to Lender. Up to 25 Working Days from Proposal Signing
Rational Ratings of Company / Directors (SME) / BLR If Required Up to 35 Working Days from Proposal Signing
Visionary Enterprise Survey Up to 40 Working Days from Proposal Signing
Assistance in Getting Approval / Permissions from RBI Up to 55 Working Days from Proposal Signing
Assistance for Funds Transfer of ECB from Lender to Client Company Up to 70 Working Days from Proposal Signing

Optional Reports

Following Reports are Standard in Nature for Execution of ECB & Equity Proposals. Exact Requirement will be provided to Client Company in Consulting Term Ship.

Report Details
Rating SME Rating of Company Promoters / Director
Rating BLR Bank Loan Rating.
Rating COMPANY Company Performance, Growth Rating
Search and Valuation of Specified Assets Detailed Valuation of Company Owned Assets will be Taken
Visionary Enterprise Survey Compressive Survey of Company / Enterprise will be carried out on 13 Topics
Techno Economic Viability The Technical Feasibility Assessment Is Focused On Gaining An Understanding Of The Present Technical Resources Of The Organization And Their Applicability

Note :Above Details are Stepwise Processing of Project Based Debt ECB & Equity. We would like to assure Complete Advisory and Assistance by Signing Term Ship for the Purpose till ECB/Equity Amount to be deposited with Company Account. Above Processing Details are General in Nature, Specific Terms of Processing will be Reflect in Consulting Term Ship.

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