Comment on The IPO Markets - Part 1

DEEPAK GOYALabab commented on 06 Jul 2016, 05:06 PM

Sir

I have a question regarding Company’s authorized capital and issued capital. As far as I know, authorized capital is the maximum capital a company can raise at any point of time by all kind of avenues & issued capital is a subset of authorized capital which the company is availing at any point of time. And issued capital is referred for establishing the holding pattern not the authorized capital at any point of time. Here when we are referring that the company has not issued full authorized capital, we are considering that the total capital is less than 100% and the company is retaining 50% (at first level) with itself. I think at any point of time, capital has to be considered at 100% and those people (promoter and angels at first level) have to forgo their shares for inducting someone else into the business.

Please correct me if I am wrong.

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