We have a Private Ltd. Company and have few Investors in hand, who are ready to invest about Rs. 300 crores with us for a period of, say 15 to 20 Years. They are ready for even 0% OFCDs.
- We do not want to issue equity shares
- Pls. guide us on which instrument we should raise such capital
Whether we can raise 0% OFCDs (Optionally Fully Convertible Debentures) for a period of 15 to 20 years?
Suppose we issue preference shares, we have apprehension about: 1)dividend 2)maturity 3)redeemable / irredeemable
Is there any other instruments prevelant in the market to raise funds in large, scale, provided the investors are ready to place money.
09 September 2009
If u raise it as a secured loan then u can consider issue of debentures in different varieties ; as unsecured loans u may be have to watch out for the provsions of S 58A of The Companies Act 1956. and the rules thereunder.But as loans u will have to take your bankers into confidence first as their interests can be affected. Issue of redemmable preference shares can be an option. If its foreign exchange then with or without repatriation rights will require different approach. In any case the sources of the money should be able to stand income tax scrutiny.
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