Overview
A rights issue offers new shares to existing shareholders in proportion to their holding; a preferential allotment issues shares to specific investors outside that process. Both require board and shareholder approval, correct pricing, and timely ROC filings.
We manage the process end to end — notices, valuation where required, allotment documentation, PAS-3 filing and updated registers — so the capital raise closes cleanly.
What's included
- Rights issue documentation & notice
- Preferential allotment process
- Valuation coordination
- PAS-3 & ROC filings
- Register updates
Frequently asked questions
What is the difference between a rights issue and preferential allotment?
A rights issue is offered proportionally to existing shareholders; a preferential allotment is offered to specific investors, often new ones.
Is valuation always required?
For preferential allotment, yes in most cases; for a rights issue, pricing is usually set by the board within permitted limits.
What is PAS-3?
The ROC form used to report the allotment of shares following either process.
Talk to us about Rights Issue & Preferential Allotment.
Rashmi K.S. & Associates · Practising Company Secretaries · Balewadi, Pune