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Practice area 02Fundraising & Private Placement
A funding round is a legal process as much as a commercial one. We run the corporate side end to end, so your money comes in on time and the record is clean for the next investor’s diligence.
What we handle
Private placementSection 42 offers with PAS-4, the separate bank account, allotment and PAS-3, on a dated timeline.
Preferential and rights issuesSection 62 issues, including valuation coordination and shareholder approvals.
Convertible instrumentsCCPS, CCDs and convertible notes, with conversion terms that hold up under the Act.
ESOPs and sweat equityESOP schemes under Section 62(1)(b), sweat equity under Section 54, grants and annual disclosures.
Investment documentationReview and drafting of term sheets, share subscription and shareholders’ agreements, and alignment of the AoA.
Foreign investmentFDI pricing, FC-GPR reporting within 30 days of allotment, and downstream investment compliance.
How a round runs with us
- Before signing: we check authorised capital, existing rights, pricing and any FEMA conditions.
- Approvals: board and shareholder resolutions, explanatory statements, and MGT-14 filing.
- Offer and money: PAS-4 offer letters, record of offers, and money received through a separate bank account.
- Allotment: allotment within the prescribed time, PAS-3, share certificates or demat credit, and register updates.
- After closing: FC-GPR where applicable, stamp duty, and a closing set of documents for the next diligence.
Common questions
Do we need a valuation report?
In most equity issues, yes. Section 62 and, for foreign investors, FEMA pricing rules require a valuation by an appropriate valuer. We coordinate it with your valuer.
Can we use investor money before allotment?
No. Money received under a private placement must sit in a separate bank account and can be used only after allotment.
Our private company has physical shares. Is that a problem?
Most private companies, other than small companies, must now issue securities only in demat form. We help you get an ISIN and convert before the round.