Allotment of Shares

A company raises capital by allotting new shares. The route — rights issue to existing members, private placement, preferential allotment, or bonus issue — determines the approvals, valuation, and disclosures required.

The firm advises on the right route, manages the valuation and resolutions, and files the return of allotment, keeping the issue compliant.

We handle each share-issue route, including:

• Rights issue to existing shareholders (Section 62)
• Private placement to identified investors (Section 42)
• Preferential allotment, with the required valuation
• Bonus issue out of reserves
• Allotment to foreign investors, with the FEMA reporting (FC-GPR)

1. 01

   Choose the route

   Select the appropriate issue route and the approvals it needs.

2. 02

   Valuation & offer

   Obtain the valuation where required and issue the offer letter (PAS-4 for private placement).

3. 03

   Resolutions & money

   Pass the resolutions, receive the application money in the prescribed manner, and allot.

4. 04

   File PAS-3

   File the return of allotment (PAS-3) and update the register of members and share certificates.

PBT keeps your share issue compliant from offer to allotment.

• The right route and the approvals it needs
• Valuation and offer documentation
• Resolutions and the PAS-3 filing
• FEMA reporting for foreign investors
• Scope, deliverables, and fees agreed in writing up front

• Do I need a valuation to issue shares?

  For preferential allotments and private placements, and for issues to non-residents, a registered-valuer (and, for FEMA, a pricing) valuation is required. We arrange it.

• What is PAS-3?

  The return of allotment, filed with the ROC after shares are allotted, recording the issue. We prepare and file it.

• How long does it take?

  A straightforward rights issue can be completed in one to two weeks; private placements take longer because of the offer and money-receipt formalities.