Dr. Gauravv Mittal Explains Why Promoters Shouldn’t Fear Dilution While Raising Funds for Growth
Every entrepreneur strives for continuous growth, and securing funds is a crucial part of that journey. One common way to raise capital is equity dilution—selling a portion of your shareholding to external investors at the company’s current valuation. However, many promoters see dilution as a threat, fearing loss of control and reduced decision-making power.
In his video, Dr. Gauravv Mittal breaks this misconception. He explains that investors are primarily focused on growing their wealth, not interfering in the business. Moreover, for listed companies, promoters can increase their holding by up to 5% through the preferential route. In short, as long as the valuation is right, dilution isn’t a loss—it’s a strategic move for sustainable growth.
So, rather than fearing dilution, embrace it as a tool to unlock your company’s true potential!🚀