Equity Financing
Raise equity capital from the right investors at the right valuation — end-to-end support from investor readiness and valuation to term sheet, SHA and ROC compliance.
Structure your equity round correctly
Tell us your funding stage and target raise. We handle valuation, documentation and all regulatory filings.
Talk to a CS →A complete equity financing support package
Valuation Benchmarking
Pre-money valuation benchmarked against comparable deals — credible and defensible to investors.
Term Sheet Review
Investor term sheet reviewed and negotiated — liquidation preference, anti-dilution and rights.
SHA and SSA Drafting
Shareholders Agreement and Share Subscription Agreement drafted and finalised with investor counsel.
Form PAS-3 Filing
ROC filing of share allotment within 30 days — board resolution, share certificates and registers updated.
FEMA and RBI Compliance
Form FC-GPR and RBI reporting handled for foreign investor equity rounds.
Cap Table Management
Updated cap table with new investors, ESOP pool and dilution impact modelled post-round.
What equity financing requires
Private Limited Company
Equity investment must be into a Private Limited company — LLPs and proprietorships cannot issue shares.
Valuation Report
A registered valuer's valuation report is required for equity allotment — mandatory under Companies Act.
Board Resolution
Board resolution approving the allotment of shares to new investors must be passed and recorded.
Shareholders Agreement
SHA governing investor rights, transfer restrictions and exit provisions must be executed.
Form PAS-3 within 30 Days
Share allotment must be intimated to the ROC within 30 days — additional fees apply on delay.
FEMA Compliance
Foreign equity investment requires FEMA-compliant pricing, Form FC-GPR and RBI reporting.
Equity given without documentation is equity given away for free. Every share allotment must be backed by a board resolution, shareholder agreement and ROC filing — we handle all three.
Common issues in equity financing
Simple steps, no surprises
Valuation established
Registered valuer report obtained and pre-money valuation agreed with investors.
Term sheet and SHA executed
Term sheet negotiated, SHA and SSA drafted and signed by all parties.
Board resolution passed
Share allotment approved by board — minutes and registers updated.
ROC and RBI filings done
PAS-3 filed within 30 days, FC-GPR filed for foreign investors, share certificates issued.
Other services you may need
Frequently asked questions
Equity financing means raising capital by selling shares in your company to investors. In return, investors receive ownership stake and associated rights. Unlike debt, equity does not need to be repaid — investors earn returns through dividends or exit events.
Yes. Under Rule 13 of Companies (Share Capital and Debentures) Rules 2014, shares allotted on a preferential basis must be at a price not less than the valuation determined by a registered valuer. A valuation report is mandatory for ROC filing.
Form PAS-3 is filed with the ROC to intimate the allotment of shares to new investors. It must be filed within 30 days of the date of allotment along with the board resolution and list of allottees.
When shares are allotted to a foreign investor, the transaction must comply with FEMA (Foreign Exchange Management Act). This includes pricing under RBI guidelines, filing Form FC-GPR with the RBI within 30 days of allotment, and maintaining records.
Equity financing involves selling ownership; there is no obligation to repay. Debt financing involves borrowing money that must be repaid with interest. Equity is more suited for high-growth startups without predictable cash flows; debt suits businesses with stable revenue.
Ready to raise equity financing for your company?
We handle valuation, SHA, ROC and FEMA filings — so your equity round closes without compliance surprises.