Shares

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DIPTI (Querist)
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16 February 2010 One of our client, a Private Limited company (having Total authorized and paid up share capital of Rs. 25 lacs-share of Rs. 10 each) wants to change their share holding pattern. Their Existing share holders will transfer certain number of shares to the new share holders.
An NRI will be purchasing 26 % of total shares. My problem is that our client wants to issue shares to the NRI at Premium of Rs. 100/-.each but to other shareholders without premium.

One solution was to issue shares to that NRI later ( i.e. may be after 6 months after issuing shares to other Indian Shareholders…)

Is there any other solution to the problem. Pls reply urgent.

Rasesh

Rasesh (Expert)
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17 February 2010 Issue shares in two series - with normal voting rights and one with lower voting rights.

This will help you in creating a justification for the differential valuation.

Amend your MOA and AOA accordingly.

Otherwise, your idea of keeping a time lag is also workable. But valuations should change to justify the premium.