Dear All
This is my first querry, please do respond to it. What is the procedure of raising capital by a newly formed Public Company. The company wishes to raise capital from general public and has the means of doing so but found that it cannot do so by means of Bonds, Preferrential Shares or Debentures as these cannot be issued before 3 years. What can it do ?
| Originally posted by : Amarjeet Sharma | ||
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Dear All This is my first querry, please do respond to it. What is the procedure of raising capital by a newly formed Public Company. The company wishes to raise capital from general public and has the means of doing so but found that it cannot do so by means of Bonds, Preferrential Shares or Debentures as these cannot be issued before 3 years. What can it do ? |
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Anyone ?????
I am not aware as to why the company cannot raise capital before completing three years of existence. Newly formed companies come up with IPO, provided they satisfy the BSE/NSE/SEBI guidelines in this regards. Moreover, Debentures and Bonds are forms of secured/unsecured loans, which can be issued by any company.
If you can share the reason for not raising the funds by way of Bonds, Preferrential Shares or Debentures, I will try to study further.
Thanks 4 the reply, was out of station 4 a few days so was unable to reply, I have learnt that Bonds & Preferrential Shares issue are not allowed b4 3 years by MCA and Debentures had to be backed by fixed assets
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