Tiny Products Ltd. is quoted in Mumbai Stock Exchange. Before 3 years, its name was changed from Small Products Ltd. It proposes to issue 10 lakh sweat equity shares of the company to a non-executive director for providi

The Company can issue sweat equity shares to a non-executive director for providing technical knowhow provided that the paid up share capital after issue of 10 lakh sweat equity shares does not exceed the authorized capital of the company. The price of the sweat equity shares to be issued shall not be less than the higher of the following: The average of the weekly high and low of the closing prices of the equity shares of the company during the last six months preceding the relevant date. Or The average of the weekly high and low of the closing prices of the related equity shares of the company during the two weeks preceding the relevant date. The relevant date for the purpose of issue of sweat equity shares means the date which is 30 days prior to the date on which the general meeting is convened to consider issue of sweat equity shares. The company shall not issue sweat equity shares more than 15% of the paid up share capital of the company in a year. However, such percentage is subject to the maximum limit of the issue value of ₹5 Crores. So also, the issuance of the sweat equity shares in the Company shall not exceed twenty five percent, of the paid-up capital of the company at any time. The CFO of Tiny products Ltd. is to be informed accordingly. The fact of change of name of the company is of no relevance here since it does not impact the pricing of the shares to be issued. So also, the said corporate action was taken before the 3 years which is not an immediate event which can impact or affect the valuation of shares at present.