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
How we approach it
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.
What's the minimum time period for a rights issue offer?
Shareholders must be given at least 15 days, and not more than 30 days, to accept a rights offer under the Companies Act, unless all shareholders consent to a shorter period.
Who conducts the valuation for a preferential allotment?
A registered valuer under the Companies Act — we coordinate with an independent registered valuer and use their report to support your pricing.
What's the ROC filing deadline after allotment?
Form PAS-3 must be filed within 30 days of allotment (15 days for private placement allotments), along with updated registers — we track this alongside the rest of the process.
Talk to us about Rights Issue & Preferential Allotment.
Rashmi K.S. & Associates · Practising Company Secretaries · Balewadi, Pune