Issue of Shares

Issue of shares is the most common mode of raising investments for the Company. The Company can issue new shares to raise fresh investments.

Shares can be issued to existing shareholders / new shareholders/employees/directors or any other person. A company can issue shares to up to 50 persons in one issue.

The shares being issued can be as follows:

• Common Equity Shares 
• Equity Shares with Differential Rights 
• Convertible Preference Shares 
• Redeemable Preference Shares 
• Optionally Convertible Preference Shares 
• Or any combination of above.

Issue of Shares can be done through following modes

• Rights Issue- Issue of new shares to existing shareholders
• Private Placement- Issue of shares to any person (including existing shareholders)
• ESOP (Employee Stock Options)
• ESPS (Employee Stock Purchase Scheme)

Note: You may also need to Increase your Authorized Share Capital for issue of Shares.

Corpedia provides professional consultation with respect to issue of shares, providing tailor-made solutions to suit your needs. Get in touch with our professionals to know all the details.