Preferential Allotment of Shares

Preferential Allotment of Shares

Preferential Allotment is allotment of fully paid up specified securities (such as equity shares, fully or partly convertible debentures) by a listed company, to a select group of investors. on a preferential basis u/s 62 of the Companies Act, 2013. Preferential allotment of shares does not include allotment of shares through public issue, rights issue, ESOP, sweat equity shares or bonus shares. Preferential allotment is subject to SEBI guidelines and must be approved by the shareholders through a special resolution. No offer letter is required for preferential allotment and payment can be made through cash or consideration other than cash.