Acquiring stake in private limited company

Co Act 2013 606 views 3 replies

Hi,

One of my client is having private limited company share capital of only 1 lac. He is in to IT domain, so he prepared a project and presented to various investors for funding. Project require huge funding say 5 crore. One of investor has shown interest in the project and ready to fund it. Now my question is how the capital restructuring could be done. He will have 50% stake, on the other side amount to be invested could be 5 crore or so. We have to maintain the capital ration @ 50% each.

Further what could be the best process to do it, which all laws will have to be complied ??

Thanks in anticipation

Replies (3)

Sir , Simply issue 10,000 shares of FV 10 @ Premium of 4990 /- 

so as to get 5Cr Value and 50% stake 

Simply saying that issue 10000 shares @ Rs.10 /each to the new comer and treating balance amount of Rs.499 Lacs as premium would be subject to considering a fact that keeping  the balance amount of premium for very long time would have legal consequences

You are right sir , so how could this situtation to be turn into 50% stake .?


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