Issuance of CCPS

Issuance of CCPS

Compulsorily Convertible Preference Shares (CCPS) are one of the most common instruments used in startup and private equity funding. They allow investors to put in capital today with a clear, predefined conversion into equity at a later stage. CCPS helps balance investor protection with promoter control, but the issuance process involves valuation, approvals, filings, and compliance with the Companies Act and FEMA (if foreign investors are involved).

We manage the structuring and issuance of CCPS so your fundraising is smooth, compliant, and investor-ready.

What we do

• Structure CCPS terms including conversion ratio, valuation, and preferences

• Coordinate valuation from registered valuers

• Draft the Shareholders’ Agreement and Share Subscription Agreement

• Prepare board and shareholder resolutions

• File MGT-14 and PAS-3 with MCA

• Handle FEMA filings for foreign investors (SMF, FC-GPR)

• Maintain registers and update the cap table

• Support during audits, investor queries, and due diligence

Why this matters

CCPS transactions involve complex terms—liquidation preference, anti-dilution, conversion triggers, voting rights, and more. Incorrect documentation or filings can affect investor rights, lead to MCA/FEMA penalties, or slow down future funding rounds.