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sunil (Manager Finance)     11 September 2011

Issue of shares a nominal value

I would like to know whether a unlisted Pvt Ltd Company can issue further shares to its existing shareholders at nominal value Rs.10/- per share.

at present 100% share are holded by a foreign company.

and that foreign company wants to infuse further capital

Can the Pvt Ltd co issue it at nominal value or at share premium after the valuation of shares.



 1 Replies


Prakash (Chartered Accountant)     11 September 2011

Firstly--there no question of listing for Private Company, so it just a Private Company


Need further details regarding your case

I do deal with some assumptions

First, if the company requires funds and wish to raise it through capital, it can allot further shares but not at Nominal Value, Valuation of existing shares should be done and allot at present value of Share to the extent permitted by Authorised capital


Secondly, Company not require any funds but wish to increase No of shares to eisting shareholders, you can go for Bonus issue, it is done out of free reserves of comapny, Means Capitalisation of Profits at nominal value only

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