favourite placement versus preferential offer

Private Placement - Governed by section42 ,Board need to identify the persons to whom the Offer letter shall be issued ( Rule 13 ,PAS rules)

Preferential Allotment - By Section 62 ( Rule 14 PAS rules)

You Can Understand, that Private Placement is used to issue securities to persons other then existing shareholders of company...

While Prefernatial Allotment is used to issue equity & Convertible securities to a Particular existing group of shareholder,like promoter, promoter groups, Employees under esop scheme, ccd holders, Preference share holders etc..