Equity Dilution
This query is : Resolved
02 November 2010
Pls explain me regarding the raising of funds through equity dilution?
Is that same thing as issue of additional shares?
What is procedure for raising the funds through eqty dilution in case of Private company?
Is that same thing as issue of additional shares?
What is procedure for raising the funds through eqty dilution in case of Private company?
04 November 2010
Equity dillution means increasing the liquidity. The compnay will dillute the share by spilitting. This in not like issue of additional shares.
Ankur Garg
(Expert)
08 November 2010
It is connected to issue of additional shares.
Issue of additional shares and raising of funds thereof will result in dilution of stake of existing shareholders.
It is also termed as preferential allotment. Section 81 is not applicable to a pvt. co.
So you may issue new shares to new allottees and raise funds.
Regards
Issue of additional shares and raising of funds thereof will result in dilution of stake of existing shareholders.
It is also termed as preferential allotment. Section 81 is not applicable to a pvt. co.
So you may issue new shares to new allottees and raise funds.
Regards
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