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Share Purchase and Share subscripion

Venu Chaganti (no) (80 Points)

02 May 2011  

Dear members

I would like to know the difference between the share subscripttion agreement and share purchase agreement ......

Please help on this.

 

Regards

Venu Chaganti

9164113900


 4 Replies

Jaideep (Service) (1363 Points)
Replied 02 May 2011

Dear Sir,

 

In simple terms;

 

Share Purchase Agreement :- Its an agreement for the aucquisation of the stake of the company so as to acquire and take the ownership of the Company.


Share Subscriptttion Agreement:- It is to subscribe the shares of the Company and fresh equity will crop in. Usually enetred by strategic investor to invest in the Compnay for some point of time having an intention to exit. When entered, they insist for chnage in AOA of the comnpany so as to have control on internal policies of the Company.


Regards

Jaideep Pandya


1 Like

SANTOSH SHAH (Company Secretary) (749 Points)
Replied 02 May 2011

Originally posted by : venu ch
Dear members

I would like to know the difference between the share subscriptttion agreement and share purchase agreement ......
Please help on this.
 
Regards
Venu Chaganti
9164113900

 Hi Venu

I agree with Mr.Jaideep view.

Share Purchase Agreement is the mode through which a company can acquire shares in other companies,

to increase the % Holding, Stake of Holding through purchase of shares.

 

 

regards

Santosh Shah

1 Like

(Guest)
Originally posted by : Jaideep
Dear Sir,

 
In simple terms;

 
Share Purchase Agreement :- Its an agreement for the aucquisation of the stake of the company so as to acquire and take the ownership of the Company.



Share Subscripttttion Agreement:- It is to subscribe the shares of the Company and fresh equity will crop in. Usually enetred by strategic investor to invest in the Compnay for some point of time having an intention to exit. When entered, they insist for chnage in AOA of the comnpany so as to have control on internal policies of the Company.



Regards

Jaideep Pandya

 
1 Like

Joy (Advocate) (90 Points)
Replied 17 September 2013

Share Purchase: can be done from an existing shareholder, who holds the shares to be "purchased". Therefore its an acquisition of shares from an existing shareholder of a Company, by another person (who may be another shareholder, or a third party non-shareholder);

Share Subscripttion: is done for fresh shares which are issued by the Company to such person. The subscriber may be an existing shareholder, or a new a third party non-shareholder. Either case, the shares to be subscribed are not held by anyone one else.


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