What does CCPS mean? What is the full form of CCPS?
The Full Form of CCPS is Compulsorily Convertible Preference Shares.
Mumbai: Convertibles are increasingly becoming the preferred investment instrument for private equity (PE) firms. Around two-thirds of the deals in the PE space in recent times were made through compulsory convertible preference shares, say industry trackers. This is to bridge the gap in the “mismatch in valuation expectations” between investors and promoters.
Compulsorily convertible preference shares are those that have to be converted into ordinary shares after a predetermined date. PE investors link the time of conversion to the company’s performance. This essentially means that the shares get converted only after the company achieves the promised growth. If the milestones are not achieved, then the PE firm reserves its right to increase the stake.
CCPS
means
Compulsorily Convertible Preference Shares
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