PRIVATE EQUITY SERVICES

Private Placement Services:
Unlock Customised Investment Solutions

At LawCrust Legal Consulting, we offer specialised legal services for businesses looking to raise capital through private placements. Our team ensures that your investment journey is smooth, compliant, and aligned with your long-term growth goals. Whether you’re seeking investors for your start-up or expanding an established venture, we guide you through every step of the private placement process.

Book Your Consultation Now

Our Expertise: Comprehensive Solutions

Management Consulting Meets Legal Expertise

Private placement is a strategic way to raise funds by offering securities to select investors under Section 42 of the Companies Act, 2013.

We empower businesses to secure private funds through private placement methods.

Why Choose LawCrust for Private Placement?

At LawCrust, we make this process seamless and efficient, providing end-to-end solutions that help businesses secure growth capital without the limits of traditional fundraising.

Securities We Handle:

Steps to get the best services from LawCrust

Understanding Goals

We begin by gaining a deep understanding of your business, its objectives, and its financial needs.

Understanding Goals

We begin by gaining a deep understanding of your business, its objectives, and its financial needs.

Customised Offers

Our team crafts personalised proposals to attract the right investors aligned with your vision and industry.

Customised Offers

Our team crafts personalised proposals to attract the right investors aligned with your vision and industry.

Seamless Execution

We manage the entire private placement transaction, ensuring compliance and a smooth process.

Seamless Execution

We manage the entire private placement transaction, ensuring compliance and a smooth process.

What we are expert at

Our Private Placement Legal Services

At LawCrust, we assist businesses through every stage of the private placement process, offering comprehensive legal services, including:

Contact Us

Why Private Placements?

Flexibility to Grow

Raise funds at your own pace within a fiscal year for sustainable scaling.

Fewer Regulatory Hurdles

No SEBI approval needed for offerings under 200 investors, making it easier.

Customisable Returns

Set return terms that benefit both your business and investors.

Frequently Asked Questions

Find quick answers to the most common questions about our services, processes, and support. Our FAQs are designed to guide you with clear information and help you make informed decisions.

A private placement is a method of raising capital by offering securities (like shares, debentures, or bonds) to a select group of investors instead of making a public offering. It is governed by Section 42 of the Companies Act, 2013, and allows companies to raise funds efficiently while maintaining confidentiality.

Private placement offers several advantages, including:

Speed: Faster execution compared to public offerings due to fewer regulatory hurdles.
Flexibility: Companies can structure the deal and pricing as per their needs.
Targeted Investor Base: Enables the company to approach investors with a clear understanding of their business.
Reduced Regulatory Burden: Requires fewer disclosures and compliance compared to public offerings.

Private placements in India are generally open to the following:

Qualified Institutional Buyers (QIBs)
High Net-Worth Individuals (HNIs)
Employees under Employee Stock Option Plans (ESOPs)
Other identified individuals or entities approved by the company’s board
As per the Companies Act, the total number of investors cannot exceed 50 per offer or 200 in a financial year, excluding QIBs and ESOP participants.

The process is governed by the Companies Act, 2013, and SEBI (Securities and Exchange Board of India) regulations. Key requirements include:

Board Resolution: Approval from the board of directors and shareholders.
Offer Letter: Issued in Form PAS-4 to identified investors.
Filing with Registrar of Companies (ROC): Details of the offer must be filed within 30 days in Form PAS-5.
Cap on Investors: A maximum of 200 investors in a financial year.

The process involves several steps:

Board Approval: Obtain approval through a board resolution.
Shareholder Resolution: Pass a special resolution at the general meeting.
Preparation of Offer Letter (Form PAS-4): Send the offer letter to identified investors.
Application Form Distribution: Provide serially numbered application forms to potential investors.
ROC Filings: File PAS-4 and PAS-5 with the Registrar of Companies within the specified timeline.
Allotment of Securities: Allot securities within 60 days of receiving application money.

Confidentiality: Maintains privacy compared to public offerings.
Targeted Approach: Allows companies to engage with specific investors.
Cost-Effective: Involves lower regulatory and marketing costs.
Quick Access to Capital: Facilitates faster fund-raising for urgent needs.

Liquidity Risk: Securities issued through private placement are not readily tradable.
Valuation Risk: Incorrect valuation of securities may impact investment returns.
Regulatory Risk: Non-compliance with laws may result in penalties.
Business Risk: The investment’s success depends on the company’s performance.

For Investors: Capital gains tax applies on the sale of securities, with rates varying based on the holding period.
For Issuers: Applicable taxes may include stamp duty on the issuance of securities and other transaction-related taxes.