shares issued at premium

[d.v. gupta]

we have formed a new pvt ltd co.. Can we issue shares to individual at a premium of Rs. 90 in new company.

[CAGOPALJI AGRAWAL]

There is no legla restriction but you should substantiate the same by way of experience, of the promoters or other factors why a person would invest the securities manyfold higher than fair value.

AI Summary

Issuing shares at premium is permissible but requires clear, documented justification based on promoters' credentials or material factors.
Issuing shares at a premium is permissible but the issuer must substantiate the premium with credible documentary reasons - such as promoters' experience, proprietary assets, strategic advantages, or other material factors - and maintain transparent documentation so the premium pricing can withstand investor scrutiny and due diligence.