i have little bit of confusion…
In ipo promoter / founder selling shares the amount goes to company account…
and when promoter selling shares in open market amount goes to his personal account…
can someone explain me when does amount goes to company account and personal account.
can promoter selling shares in ipo takes the amount in personal account
LLP company is a entity on its own, Promoters just handle management of this entity. In IPO, There is 2 parts, Offer for Sale and Newly Issued shares. Offer for sale → Holdings sold by Promoters/Investors and money goes to promoters/investors. New Issue Shares → new Shares issued by company and money goes to company.
When a company IPOs, there are two types of issues.
OFS (Offer for Sale): In this company promoters/shareholders will be selling their shares and any proceeds received go to those persons, not the company.
Fresh Issue: In this, the company issues new shares, and any amount raised goes to the company and not the promoters/shareholders.
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…)
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%,
simply …
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 ?
