Glossary
Share Subscription Agreement (SSA)
The legal document under which new shares are issued and subscribed in an Indian financing round — operationalizes the term sheet for share issuance.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
Share Subscription Agreement (SSA), sometimes called Stock Purchase Agreement, is the legal document under which new shares are issued by the company and subscribed by the investors. It operationalizes the terms agreed in the term sheet for the specific share issuance.
The SSA covers: number and class of shares being issued, subscription price per share, conditions precedent to closing (regulatory approvals, board resolutions), warranties and representations by the company and founders, indemnities, and closing mechanics.
India Context
Indian financing rounds typically have both an SSA and an SHA (Shareholders Agreement). The SSA governs the share issuance specifically; the SHA governs ongoing rights and obligations of shareholders. Both are usually executed simultaneously at closing.
Example
Series A round: ₹50Cr at ₹250Cr post-money. The SSA specifies that the company will issue 20,000 CCPS at ₹25,000 per share to the Series A investor at closing, subject to specific conditions (board approval, ROC filing, etc.).
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