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cs.silky (Querist)
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07 January 2012
dear all

Kindly advise me on the following query

P ( a public ltd co.) wants to invest in the equity shares of L ( a pvt ltd co.) . Both are group companies. L has almost 17% equity shares lying unissued. Now the management has decided to acquire shares in L ltd. so what percentage of shares should P acquire and what factors should be kept in mind while deciding the consideration of Shares.( Both are unlisted companies)

Charu Srivastava

Charu Srivastava (Expert)
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07 January 2012 If the shares acquired and to be acquired is more than 50%, then l will become the subsidiary of P.

I guess there is no restriction as to investment.

other views are solicited..