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Valuation report

Pulkit Singhania (Company Secretary) (30 Points)

06 December 2018

Dear All,

i need advice whether company can issue equity shares on the basis of single valuation report to two different shareholders via private placement and via conversion of loan into equity.

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10 Replies

Shrikant (Associate) (350 Points)
Replied 06 December 2018

Date for private placement and for conversion of loan into equity are same or different?

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Pulkit Singhania (Company Secretary) (30 Points)
Replied 06 December 2018

Date for private placement and for conversion of loan into equity are different. whether company can get valuation report within short period of two months?

Shrikant (Associate) (350 Points)
Replied 06 December 2018

see here, after private placement of securities/shares, the valuation of shares will get changed.

Shrikant (Associate) (350 Points)
Replied 06 December 2018

why a company cannot get a valuation report in the short period of two months?

Pulkit Singhania (Company Secretary) (30 Points)
Replied 06 December 2018

yes. Company can issue shares on the basis of one valuation report?

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Pulkit Singhania (Company Secretary) (30 Points)
Replied 06 December 2018

it is not possible for company to make valuation within short period of one month.

Shrikant (Associate) (350 Points)
Replied 06 December 2018

But after private placement of shares, valuation of shares will get changed so dont you it would be a possibility that creditors (whose loan gonna get converted) may not get their loan converted at proper price. So, how will you manage the same?

Pulkit Singhania (Company Secretary) (30 Points)
Replied 06 December 2018

both allotments are done to the promoters. conversion of loan into equity is made to holding company.private placement is made to promoter in individual capacity.

Avinash Kumar (35 Points)
Replied 07 December 2018

Dear sir,
Please tell me whether digitally signed PDF of Financial statement and Extract of Annual return can be attached in Form AOC-4 and MGT-7' s attachment ?