Issue Price of Right Shares of a Pvt Ltd

Pvt ltd 878 views 3 replies

Dear All,

 

Can you Please tell what are the provision pertaining to issue price of right shares of a Private Limited Company???

Replies (3)

Read Unlisted Companies Prefential Issue Rules.

Thank you for your kind reply HARDIK, But my question intended to " Issue Pricing / Price valuation " of RIGHT Shares of PVT LTD. Unlisted Companies Prefential Issue Rules is for Unlisted Public Company Limited. I wanted exact answer for Private Ltd

 

It would had been immense help if any qualified member could had given accurate answer for this. Awaiting for quick response

Dear Mr. Ganesh,

There may be two alternate for valuation of shares in your case:

1. in case the shares are to be allotted to the foreign investors under FDI, then you will have to follow the DFC (discounted future cash flow) method as required by the RBI under FEMA;

2. in other case, you may follow the CCI guidelines for the valuation of shares.

Best Regards

CS Ashwini Kumar


CCI Pro

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