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Danish (MD)     19 March 2011

Process of FDI in Pvt or Public Ltd. company

Hello there

I need to know Process of FDI in Pvt or Public Ltd. company and even the difference of both , and which is easier ? which is beneficial ?

 

Thanks



Learning

 5 Replies

Manish Singh (Advocate)     22 March 2011

it is easier when a company is not a listed one.

the process may vary depending on the strategy of investment. Please be little more specif. 

Danish (MD)     22 March 2011

we registered special pvt company for a solar project in india , and an offshore company in UK ,where debt will be raised in offshore company from german bank and we need to bring in india , now its chance to make indian company public , we have an option to bring from our offshore company funds to india through FDI may be we structure debt or equity ... looking for the best suggestions... for both decissions..

Bringing in india Via debt or equity.

Bringing in india to pvt ltd  or public ltd.

Manish Singh (Advocate)     22 March 2011

does  it mean that the Indian company was a joint venture?

anyways,I will be confined only to the fact that you need to bring in investment by a UK company.

ill work on your query and will get back to you.

Danish (MD)     22 March 2011

ok , i will wait ...

Manish Singh (Advocate)     26 March 2011

Dear,

After doing some preliminary research, I think you should stick with private company existence if you do not compulsorily need public company.

As per my view, you should make the UK company a shareholder and then raise a loan once UK Co. becomes your shareholder. This way you would not find restrictions in raising loan from your shareholder. 

or you can have that money as your equity consideration and then issue shares agaisnt the same. But here, you shall be liable to issue a  large number of shares against the whole FDI.

Even if you issue debentures, you ought to convert the same into equity since you can only issue convertible debentures in this case.


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