Document background
The Share Subscription Agreement And Share Purchase Agreement is a crucial document used in Indian corporate transactions where an investor seeks to acquire stake in a company through a combination of newly issued shares and purchase of existing shares. This hybrid agreement is commonly used in private equity investments, venture capital funding rounds, and strategic investments where the investor wants to achieve a specific shareholding percentage through multiple methods. The document must comply with Indian corporate law framework, particularly the Companies Act, 2013, securities regulations, and foreign exchange laws if foreign investors are involved. It typically includes detailed provisions about share valuation, payment mechanisms, representations and warranties, conditions precedent, and post-closing covenants. The agreement is particularly important for maintaining clarity between multiple parties and ensuring smooth execution of complex share transactions.
