17 February 2013
HI MY COMPANY WANTS TO ISSUE 100 SHARES @RS.100/- EACH AT A PREMIUM OF RS.9900/- EACH. I WANTED TO KNOW WHETHER THERE IS ANY SPECIFIED LIMIT ABT ISSUE OF SHARES AT PREMIUM OVER YOUR NOMINAL VALUE? WHAT IS THE MAXIMUM VALUE AT WHICH SHARES CAN BE ISSUED AT PREMIUM? PLS TEL ITS VRY URGENT THANX IN ADVANCE
18 February 2013
the premium on issue of shares is normally driven by the market forces. it is directly proportional to the financial results and credibility of the company and return on capital employed. there is no restriction i.e. flooring or ceiling of the premium and it depends on the company that how it wants to issue the shares and how much premium company wants to generate from the issuance of fresh shares.
CAclubindia
