RiNVENT™ Industries Pvt. Ltd.
Smart Solutions using Innovative Technologies
Though we are having sufficient financial resources to execute routine projects, we need additional capital for expansion whenever we want to grow.
One of the ways to raise capital is to issue Preference Shares to Investors.
Preference Shares allow an investor to own a stake at the issuing company. This is done with a condition that whenever the company decides to pay dividends, the holders of the preference shares will be the first to be paid. Dividend payment of the preference shareholders is fixed and is somehow company liquefies. The owners of the preference shares will be the first one to get their money back after the company has paid back its debt.
The biggest advantage is that dividend income is tax-free in the hands of investors, though companies pay dividend distribution tax.
The content provided on this page is just for information. The investors are requested to get the complete rules and regulations from their financial or tax consultants before investing. Though the content of this page is updated regularly, RiNVENT Industries Pvt Ltd is not responsible for the accuracy of the content published on this page in any manner as the company's act and tax regulations are being updated by the Government bodies time to time.