Section 42 of CA 2013 : Section 42: Issue Of Shares On Private Placement Basis

CA 2013

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Explanation using Example

Imagine a startup company, Tech Innovations Pvt. Ltd., is looking to raise additional funds to expand its operations. Instead of going for a public issue, which can be a lengthy and complex process, the company decides to issue shares through a private placement.

The Board of Directors identifies 40 high net-worth individuals (HNIs) and institutional investors who might be interested in investing in the company. They prepare a private placement offer document, which includes all the details about the offer, such as the number of shares, price per share, and the company'...

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