This step-by-step approach ensures that you:
✔️ Raise ₹20 crore at ₹100 crore valuation
✔️ Retain at least 80% control as a founder
✔️ Legally structure ₹50 lakh personal investment properly
✔️ Comply with MCA and ROC regulations

📌 Step 1: Your Company’s Current Status

📌 Step 2: Key Challenges That Need to Be Addressed

🚨 Problems Identified:

✅ Problem 1: Authorized Share Capital is too low (₹1 lakh) to issue ₹20 crore worth of shares.
✅ Problem 2: You need to structure ₹50 lakh personal investment before external investors join.
✅ Problem 3: If you directly issue ₹20 crore worth of shares, founder control may drop below 80%.
✅ Problem 4: Company does not have ₹100 crore in bank assets, so valuation justification is required.
✅ Problem 5: Right Issue can be considered to raise funds from existing shareholders before external investors.

📌 Step 3: Action Plan to Solve These Issues

🔹 Phase 1: Increase Authorized Share Capital (NO Money Required)

Since your Authorized Capital is ₹1 lakh, you cannot issue ₹20 crore worth of shares unless you increase it first.

✅ Increase Authorized Capital to ₹10 crore (not ₹100 crore yet).
✅ This ensures flexibility without unnecessary compliance costs.

How to Increase Authorized Capital?

1️⃣ Board Meeting – Pass a resolution for an increase in Authorized Share Capital.
2️⃣ EGM (Extraordinary General Meeting) – Get shareholder approval.
3️⃣ File SH-7 & MGT-14 with MCA – Officially update the MOA.

📌 After This Step:

• New Authorized Capital: ₹10 crore
• Paid-Up Capital Remains ₹1 lakh

🔹 Phase 2: Structuring ₹50 Lakh Founder Investment

Since the company needs money immediately, you can invest ₹50 lakh properly using one of these methods:

📌 Recommended:
1️⃣ Issue New Shares at ₹10 per Share (before valuation increase).
2️⃣ You get 5 lakh new shares for ₹50 lakh.
3️⃣ This ensures founders hold a strong position before external investors join.

After Founder Investment:

📌 Now, the founder has majority shares before new investors join.

🔹 Phase 3: Consider a Rights Issue Before External Investment

A Rights Issue can be an alternative way to raise funds from existing shareholders first.

Pros of Rights Issue:

✔️ Gives founders a chance to invest first before external investors join.
✔️ Helps raise money without diluting founder control significantly.

Cons of Rights Issue:

❌ If founders & existing shareholders do not have enough money, then it may not work.
❌ If the company needs quick money, Rights Issues can take 30+ days.

📌 Recommended Action:
1️⃣ Offer Rights Issue at ₹50 per share to founders and existing shareholders.
2️⃣ Founders invest ₹50 lakh via the Rights Issue instead of direct purchase.
3️⃣ If all shares are not subscribed, they can be offered to external investors.

🔹 Phase 4: Raise ₹20 Crore from External Investors

After securing founder control, issue new shares for ₹20 crore at ₹100 crore valuation.

How to Structure the Investment?

1️⃣ Pre-Money Valuation: ₹100 crore
2️⃣ Investment Amount: ₹20 crore
3️⃣ Post-Money Valuation: ₹120 crore
4️⃣ Investor Equity Required: (20120)×100=16.67%\left(\frac{20}{120}\right) \times 100 = 16.67\%

5️⃣ New Shares to Be Issued:

• Share Price (Based on Valuation): ₹1,000 per share
• New Shares Issued to Investors: ₹20,00,00,000₹1,000=2,00,000 new shares\frac{₹20,00,00,000}{₹1,000} = 2,00,000 \text{ new shares}

🔹 Phase 5: Final Shareholding Structure

📌 Founders successfully retain 80.5% ownership. 🚀

📌 Step 4: Legal Compliance & MCA Filings

Steps for Founder Investment (₹50L)

✅ Board Meeting & Shareholder Approval – For issuing shares.
✅ File PAS-3 (Return of Allotment) – With MCA after issuing shares.
✅ Update Register of Members & Share Certificates.

Steps for ₹20 Crore External Investment

✅ Board Resolution – Approve the new investor funding.
✅ Shareholder Approval (EGM) – If required.
✅ Offer Letter to Investors (PAS-4) – Inform investors about share issuance.
✅ Investment Money Deposited in Company Bank Account.
✅ File PAS-3 (Return of Allotment) with MCA.
✅ Issue Share Certificates to Investors.

📌 Final Summary: Your Optimized Plan

📌 Would you like draft resolutions & MCA filing templates? 😊