Private Placement: Conditions & Checklist
By Team Legistify / 2016-04-28
Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. PIPE (Private Investment in Public Equity) deals are one type of private placement.

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Private Placement means any offer of Securities or invitation to subscribe securities to a select group of Persons by a company (other than by way of a public offer) through the issue of a “Private Placement Offer Letter”

Conditions for Private Placement

1. Issue shall be authorized by the Articles of Association and by a Special Resolution

2. The securities shall be made fully paid up at the time of their allotment BY PUBLIC AND PRIVATE COMPANIES Sec. 62(1) (c) read with Rule 13 of Companies (Share Capital and Debentures) Rules, 2014 and Sec. 42 read with Rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014

3. In case of Non-Convertible Debentures, it shall be sufficient if the company passes a previous Special Resolution once in a year for all the offers for such debentures during the year

Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. PIPE (Private Investment in Public Equity) deals are one type of private placement.

Have a Legal Issue?

Get connected to the Best Lawyers and Chartered Accountants Near You!


Related Posts

Read Our Blogs on Similar Topics