A question about "Authorized but Not Allotted shares" and many more

[sachin_Learner]

1. In Zerodha Varsity > IPO markets part 1 chapter, " (Promoter + Angel 1 + Angel 2) shareholding = 50% ".
   My question is, if company retains 50% of shares then is it not a dead investment for the company ?

2. Are the “Promoter and Promoter group” shares Preference shares? If yes, are these the ONLY
   preference shares that the company has issued ?

3. How can one know about the agreements(details like maturity period and mre) related to the preference shares that a company has issued? (I mean, what kind of a preference share it has issued, like, say, convertible and redeemable and etc)

4. Is it an obligation for any company to disclose the share holding pattern quarterly on their website or is it under a company’s discretion?.

5. Do the terms “Subscribed share capital and Paid up share capital” come into picture only when a company issues share through IPO?. I am unable to understand the subscribed and paid up capital.

Please help.

[Karthik]

@sachin_Learner

• In Zerodha Varsity > IPO markets part 1 chapter, " (Promoter + Angel 1 + Angel 2) shareholding = 50% ".
  My question is, if company retains 50% of shares then is it not a dead investment for the company ?
• Are the “Promoter and Promoter group” shares Preference shares? If yes, are these the ONLY
  preference shares that the company has issued ?
• How can one know about the agreements(details like maturity period and mre) related to the preference shares that a company has issued? (I mean, what kind of a preference share it has issued, like, say, convertible and redeemable and etc)
• Is it an obligation for any company to disclose the share holding pattern quarterly on their website or is it under a company’s discretion?.
• Do the terms “Subscribed share capital and Paid up share capital” come into picture only when a company issues share through IPO?. I am unable to understand the subscribed and paid up capital.

@sachin_Learner its best if you post these queries in Varsity itself, under the relevant chapter, so that it helps other readers there.

As far as these queries are concerned, the entire conversation was set up around a hypothetical situation, in an attempt to explain how a company is formed and evolves through to an IPO. I’d suggest you don’t read too much into the technicalities of this explanation because some of it is an oversimplification.

@sachin_Learner

• How can one know about the agreements(details like maturity period and mre) related to the preference shares that a company has issued? (I mean, what kind of a preference share it has issued, like, say, convertible and redeemable and etc)
• Is it an obligation for any company to disclose the share holding pattern quarterly on their website or is it under a company’s discretion?.
• Do the terms “Subscribed share capital and Paid up share capital” come into picture only when a company issues share through IPO?. I am unable to understand the subscribed and paid up capital.

3. This will be stated in the annual report of a company, look under the associated notes of share capital (balance sheet item)

4. For a listed company, yes. Not for a private company.

5. Authorized shares are the shares issued by the company at the time of its formation. Paid-up is the number of shares that are fully paid for by the promoters and investors. Subscribed shares at authorized shares, which are paid up. When a company goes IPO, if it is not fully subscribed, then the subscribed shares will be lesser than the paid-up shares.

[sachin_Learner]

@Karthik Okay I will post the questions in Varsity. But the terms “Subscribed share capital and Paid up share capital” still seems to be confusing to me. So I have even posted the question in IPO markets 1 chapter and I am eager if some can explain the same with the respect t the example mentioned in that chapter.
Thanks.

[Rahul0001]

How a share is diluted ?