Investment Pathways
Investors can look at participating in the Avtar Instalments growth story by participating in the capital structure in any of the following manners:
1. Convertible Debentures-This option gives baoth the issuer and the investor the flexibility to structure the transaction based on mutually agreed milestones and coupon payments adjusted for free cash flows in the company thus avoiding asset liability mismatches.
2. Preference Shares –Ideal for risk averse investors as they have a call – option and also have senior status compared to common stock holders. However, it is important to note that the preference shares may not carry voting rights.
3. Vanilla Debt – The company can raise secured / unsecured debt up-to an amount that does not violate the debt equity ratio prescribed by the board.
4. Equity Capital – At the right valuation, discounting the future growth story and earn.