Medium to large-sized and capital-intensive businesses that require larger capital find it favorable to convert a Pvt Limited Company into a Public Ltd Company. This conversion facilitates easy raising of public investment, and there are no limitations on the maximum number of members/shareholders.
In addition, a public limited company can easily raise money from the general public through IPO/FPO, debentures, deposits, etc. and its shares can be listed and traded on a Stock Exchange in India. A Private Limited Company registered in India may convert itself into a Public Limited Company by increasing the shareholder count to 7 (seven) and directors count to 3 (three) and by following the provisions of the Companies Act 2013.
Therefore, nowadays, many Private Limited Companies are choosing to convert into Public Limited Companies to list on the stock exchange and expand their business.