Issue of shares at a premium by a loss making public ltd co.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 Can a loss making public company issue shares at a premium with the intention to convert promoters' loans into equity within the existing Authorised Capital.

What are the formalities and modalities?

Is valuation of land and buildings (only tangible assets) a must in such a case?

Ajay Mishra

Ajay Mishra (Expert)
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09 April 2012 Hi

Yes they can issue shares at premium. please read Unlisted Public Companies (Preferential Allottment) Rule, 2003 with Amendement Rule 2011 for procedure.

Regards

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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09 April 2012 yes, Agree with Mr. Ajay,
But a loss making public company can not issue shares at premium to public(IPO).
regulation 26 of SEBI(ICDR) has to be followed for IPO.

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