Proceeds of fresh issue of shares (whether Equity or Preference) made for the purpose of redemption. Here the word "Proceeds" means the amount received on issue of fresh shares Excluding Premium. So the nominal / par / face value of fresh shares will only be considered as proceeds of fresh share.
The funds for redemption come from two sources— fresh issue of shares and profits of the company. When redemption is out of fresh issue, the amount received on fresh issue is utilized for the redemption of preference shares. Thus new shares take the place of redeemed shares.
Share Proceeds means the aggregate amount of net cash proceeds the Seller receives upon the sale or other disposition of the Shares, after deducting any and all costs, fees, Taxes and any other type of expense incurred or owed in connection with, or as a result of, the sale or other disposition of such Shares.
The payment of redeemable preference shares can be done partially from the profits of the Company and partially be issuing new shares. Thus, the redemption of redeemable preference shares is done from the profits of the company and by issuing new shares.
Under the circumstances, a company can redeem its preference shares (i) using fresh issue of shares and (ii) out of profits by creating Capital Redemption Reserve.
So the nominal / par / face value of fresh shares will only be considered as proceeds of fresh share. c. The premium, if any, payable on redemption must be provided for out of the following two sources before such shares are redeemed: i) Securities Premium A/C ii) Profits (whether divisible or not).
SHARES. Proceeds of a fresh issue of share. It is clearly indicates that amount received from fresh issue of debentures or loans arranged or assets sold cannot be taken into account technically for the redemption of redeemable preference shares. Capital redemption reserve.
Issue Proceeds means the amount raised by the Issuer from the Issue; Sample 1.
Fresh Issue means issue, by the Company, of any Securities including preference shares. Sample 1Sample 2. Fresh Issue has the meaning attributed to such term in the recitals of this Agreement.
/rɪˈdɛmpʃən/ Redemption is the buying back of something. You might try for redemption by attempting to buy back a bike you sold, or you might attempt to buy back your soul after you steal someone else's bike.
Redemptions are when a company requires shareholders to sell a portion of their shares back to the company. For a company to redeem shares, it must have stipulated upfront that those shares are redeemable, or callable.
The methods of redemption of the debt can be as follows: Paying back in lump sum amount at at time. Paying back in easy instalments. Purchasing the debentures in the open market.
Redemption Proceeds means any proceeds in any applicable currency from a redemption in respect of the Charged Assets in accordance with the terms and conditions of such Charged Assets.
Redemption of debentures refers to the re-payment of debt that the company raised in the form of debentures. The company issues debentures which have fixed maturity date. At the time of maturity, the company repays the debenture holders for the investment made by them.
The Fund's redemption price will be lower than its issue price because the redemption price includes an allowance for estimated sales costs, which are excluded in the issue price.
/ (ˈprəʊsiːdz) / pl n. the profit or return derived from a commercial transaction, investment, etc. the result, esp the revenue or total sum, accruing from some undertaking or course of action, as in commerce.
1. : money or other property received as the result of a sale or other transaction especially involving collateral. retain a security interest in the proceeds of collateral. 2. : money received from an insurance policy.
What are Proceeds? Proceeds refers to the cash received from the sale of goods or assets during a particular period. The total is obtained by multiplying the quantities sold by the selling price per unit.
As per Sec. 80 of the Companies Act, preference shares can only be redeemed out of profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purpose of redemption.
IPO vs OFS: Difference in the two concepts
In contrast to IPOs/FPOs, no actual form or form-structures are expected to apply for shares in OFS. Likewise, while IPO/FPO issues stay open for three-four days, an OFS gets over in a solitary trading day.
A redemption of shares is where the proposed shares to be redeemed are currently redeemable shares in name or are converted to redeemable shares before the redemption. A buyback of shares involved the proposed shares are bought back in its current form and a contract is used for the purchase.
Common shares are not redeemable. Once those shares are redeemed by the corporation, that shareholder no longer has any rights to those shares.
Redemption by Combination of Fresh Issue and Capitalization of Undistributed Profits. A company can also use the combination of both, i.e., partly from fresh issues and partly from capitalization of undistributed profits for the redemption of preference shares.