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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.

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. (AI Summary)
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CAGOPALJI AGRAWAL on Jan 31, 2011

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.

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