Author: CS Sachin Kotian,
Published in: Taxmann
Private companies in India face restrictions on public fund-raising under the Companies Act, 2013, making alternative funding critical for growth. Key options include banking sources like term loans, cash credit, overdrafts, and project finance, as well as non-banking avenues such as private equity, venture capital, angel investors, and debt instruments like debentures, bonds, commercial paper, and masala bonds. Companies can also explore equity infusion through preferential allotment, private placement, sweat equity, ESOPs, and right issues. Foreign funding avenues include ADRs, GDRs, FCCBs, FCEBs, and external commercial borrowings. Structured compliance is essential for both lenders and borrowers.
