The ipo markets - part 1 - varsity by zerodha
Here promoter holding is showing as 40% .
which is 40% of authorized capital…
If somebody says he holds 100 % of company , does he means he has 100% of authorized capital.
and it want another investor to join in company , in exchange of 10 % shares. Does he given 10% from his belonging , or he will increase the authorize capital…
(latest show on sony tv Shark tank, many business man says they have 100 % of shares of their company. And want to raise funds of xyz amount for 10 % shares…)
And if someone says he holds 90% of company , does he means 90% of authorized capital or 90 % of issued capital.
Correct me if i am wrong.
Authorized capital is the capital which company decides and pay fees to government
and issued capital is the amount which promoter does initial investment in the company.
lets say , 1 crore as authorized capital by paying fee to government (MCA)
and 20 lakhs as issued capital by investing 20lkhs into company as initially.
Now the promoter has invested 18 lakhs and 2lakhs from investor. So the promoter holds 90% and investor holds 20%,
if somebody want to start a company with authorized capital of 1 crore, should the promoter along with investor have to fund the company by 1 crore cash ?
How the face value per share of company is decided while starting, can it be any amount 5 / 10 / 100 / 1000 etc., or any procedure to it.