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Conversion Of Loan Into Equity - Chhota CFO Blog Bangalore
- Location: Bangalore, Bangalore, Karnataka, India
"Conversion of Loan into Equity" refers to a financial process where a company's outstanding debt (loan) is converted into equity shares. This typically occurs when a lender, often a financial institution or investor, agrees to convert the amount owed by the company into ownership stakes (shares) in the company. This can happen in situations where the company is unable to repay the loan, and the lender sees potential in the company's future growth. The process involves legal and regulatory compliance, valuation of shares, and approval from relevant authorities. It can provide the company with debt relief while giving the lender a stake in the business. For more details, you can visit the provided link on Chhota CFO's blog.
https://www.chhotacfo.com/blog/conversion-of-loan-into-equity/






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