Please Wait ..

to your account


Remember Me

Forgot your password?

Sign-up now

Join and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

Discussion > Corporate Law > Others >

Preferential Allotment

    Post New Topic
Pages : 1

Related Files

Company Secretary

[ Scorecard : 2283]
Posted On 16 December 2010 at 17:45 Report Abuse


What is the difference between Preferential Allotment and Private Placement of shares?

Can we say that Preferential Allotment is a kind of Private Placement of shares??????

God Bless

Udit Sharma

Online classes for CA CS CMA

Share on

Rajeev kumar Nayak

[ Scorecard : 283]
Posted On 16 December 2010 at 19:16

Yes, Private placement of shares is a kind of preferential allotment of shares.

in case of listed company, SEBI ICDR Regulations uses the term preferential allotment.

in general meaning when shares are issued to selected group of people and not to public at large then it is called private placement. same meaning is of private placement also.

thus both have same meaning.


Rajeev Nayak.

Jayashree S Iyer
Company Secretary

[ Scorecard : 3114]
Posted On 17 December 2010 at 10:43

The difference being in case of listed companies allotment to select group of people will be called preferential allotment while in case of unlisted company it will be called a private placement.


[ Scorecard : 1344]
Posted On 17 December 2010 at 10:48

Preferential allotment is an allotment made by giving preferences to a selected group of people.

While private allotment is through private arrangement for subscribing shares. Generally term used when anchor investor or venture capital invest in the compnay.


There are 3 Replies to this message

Related Threads

Post your reply for Preferential Allotment

Your are not logged in . Please login to post replies

Click here to login

Not a member yet ?? Click here to signup



  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.

Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top