Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan...
description
Transcript of Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan...
![Page 1: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/1.jpg)
Need for Tweaking ‘Growth Capital’ Model in the Indian context?
By: Ms. Seema Jhingan (Partner)
![Page 2: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/2.jpg)
2
Its time for the Investor-Entrepreneur dynamics to change
Revival of the ‘Growth Capital’ Model
![Page 3: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/3.jpg)
3
… the ‘Minority Stake with Majority Rights’ Attitude.
Investor Expectations Need to Change…
![Page 4: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/4.jpg)
4
Nomination on Board – not commensurate with investment
Mandatory Quorum Requirement
Board Level Participation
![Page 5: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/5.jpg)
5
Reserved Matters / Affirmative Voting Rights
Operational Interference
Reporting Requirements
Voting and Reporting Rights
![Page 6: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/6.jpg)
6
Anti-Dilution, Ratchet and other Pre-emptive Rights Lock-in on Transfer of Promoter Shares
ROFO and ROFR Tag Along and Drag Along
Pre-emptive and Restrictive Rights
![Page 7: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/7.jpg)
7
Public Offering Buy-Back
Put options Strategic Sale - with Drag Along
Complicated Exit Options – Do they work?
![Page 8: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/8.jpg)
8
…the mindset of ‘playing’ with Investors’ money.
Entrepreneur Expectations Need to Change...
![Page 9: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/9.jpg)
9
…is NOT free Money !
Investors’ Money...
![Page 10: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/10.jpg)
10
…need to be complied with.
Assumed Obligations...
![Page 11: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/11.jpg)
11
…to unapproved business plans is…
Diversion of Funds...
![Page 12: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/12.jpg)
12
…are for keeps.
Exit Options...
![Page 13: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/13.jpg)
13
Cooperation
Successful Growth Capital Model
Reasonableness
ContributionCompliance
Space
Delivery
Harmony
Performance
![Page 14: Need for Tweaking ‘ Growth Capital’ Model in the Indian context? By: Ms. Seema Jhingan (Partner)](https://reader030.fdocuments.net/reader030/viewer/2022012904/568164c2550346895dd6d5d3/html5/thumbnails/14.jpg)
C-10, Gulmohar ParkNew Delhi – 110049
Tel: +91-11-41662861Fax: +91-11-41662862
E-mail: [email protected]