Issue of shares at premium

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2012 Dear Sirs,

There is a public company having Rs. 50 lac as Authorised Capital. Can the company issue 500000 (five lac) shares of Rs. 10 each at a premium of Rs 40/- each? in this case:

1. What are the approvals does it have to take before such issue?

2. Does it have to increase its authorised Capital to accommodate the amount of share premium?

Ajay Mishra

Ajay Mishra (Expert)
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18 September 2012 Hi

If the Company has authorised share capital of Rs. 50,00,000 then he can issue 500000 shares of Rs. 10/- at any premium.

So, you can issue up to 500000 shares @ Rs.10 with a premium of Rs. 40/-