Issue of shares at a premium by a loss making public ltd co.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 April 2012
Can a loss making public company issue shares at a premium with the intention to convert promoters' loans into equity within the existing Authorised Capital.
What are the formalities and modalities?
Is valuation of land and buildings (only tangible assets) a must in such a case?
What are the formalities and modalities?
Is valuation of land and buildings (only tangible assets) a must in such a case?
Ajay Mishra
(Expert)
09 April 2012
Hi
Yes they can issue shares at premium. please read Unlisted Public Companies (Preferential Allottment) Rule, 2003 with Amendement Rule 2011 for procedure.
Regards
Yes they can issue shares at premium. please read Unlisted Public Companies (Preferential Allottment) Rule, 2003 with Amendement Rule 2011 for procedure.
Regards
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CA CS Amit S. Kedia
(Expert)
09 April 2012
yes, Agree with Mr. Ajay,
But a loss making public company can not issue shares at premium to public(IPO).
regulation 26 of SEBI(ICDR) has to be followed for IPO.
But a loss making public company can not issue shares at premium to public(IPO).
regulation 26 of SEBI(ICDR) has to be followed for IPO.
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