Economy, asked by prateek4577, 1 year ago

Is there any preference while doing the allotment?

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Answered by devil9274
0
Preferential Allotment is the process by which allotment of securities/shares is done on a preferential basis to a select group of investors. In this Company makes bulk allotment of Shares/ Securities to individuals, companies, venture capitalists or any other person through a fresh issue of shares.
A preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.
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