15 February 2012
Can anyone tell me what is the minimum promoter's contribution in preferential allotment of equity shares in a public company ? Paid up Capital of Company is Rs. 10,40,00,000 and through preferential allotment it wants to raise its Capital to 30,00,00,000. Present Holding of Promoters is 42%, whether the promoter group can maintain the same holding in new issue also ? Please suggest as soon as possible.
Yes the promoter can maintain such holding, it is a preferential allotment of shares, shares can be issued at any percentage to any specified people or group of people. You just need to fulfill the preferential issue guidelines.
I agreed with Mr. Ankur, the provision of section 81(1A) of the Companies Act, 1956 read with Chapter VII of SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009, do not deal with the promoter contribution in preferential issue.
You can issue shares on preferential basis without changing the percentage of promoter holding, but after allotment of issued shares the percentage of promoter holding reduced if the shares are issued to other and you not allotted the same to promoters to maintain the holding up to 42%.
I agreed with Mr. Ankur, the provision of section 81(1A) of the Companies Act, 1956 read with Chapter VII of SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009, do not deal with the promoter contribution in preferential issue.
You can issue shares on preferential basis without changing the percentage of promoter holding, but after allotment of issued shares the percentage of promoter holding reduced if the shares are issued to other and you not allotted the same to promoters to maintain the holding up to 42%.
I agreed with Mr. Ankur, the provision of section 81(1A) of the Companies Act, 1956 read with Chapter VII of SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009, do not deal with the promoter contribution in preferential issue.
You can issue shares on preferential basis without changing the percentage of promoter holding, but after allotment of issued shares the percentage of promoter holding reduced if the shares are issued to other and you not allotted the same to promoters to maintain the holding up to 42%.
I agreed with Mr. Ankur, the provision of section 81(1A) of the Companies Act, 1956 read with Chapter VII of SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009, do not deal with the promoter contribution in preferential issue.
You can issue shares on preferential basis without changing the percentage of promoter holding, but after allotment of issued shares the percentage of promoter holding reduced if the shares are issued to other and you not allotted the same to promoters to maintain the holding up to 42%.
CAclubindia
