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maximum limit of premium for issue of equity shares for investment
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No maximum limit specified in companies act. It depends upon the market value of shares of the company.

Issue price of share including share premium is a subject matter of financial planning and negotiation between company and its share holders.

Shares are issued at premium with a view to strengthen capital base keeping share capital low so that servicing of share capital (by paying dividend and issue of free shares/s bonus shares) is easy and better in future.

One important aspect about share premium about dividend can be illustrated with example of shares, market price of share and dividend yield.


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