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Preferential Allotment

Raising a round from specific investors? We handle the preferential allotment / private placement — valuation, offer letter, approvals and filings — compliantly.

Overview

Preferential allotment (a form of private placement) is how a company issues fresh shares to a select group of identified investors — the standard route for raising an equity round. It requires a registered-valuer valuation, a special resolution, a private-placement offer letter (PAS-4), and return of allotment (PAS-3).

GovYapar manages the full process — valuation coordination, offer documentation, approvals and filings — so your fundraising is clean, compliant and closes smoothly.

What’s included

  • Valuation coordination
  • Offer letter (PAS-4) preparation
  • Board & special resolution support
  • Separate bank-account guidance
  • Share allotment & PAS-3 filing
  • MGT-14 & register updates

Who needs this

  • Companies raising an equity round
  • Founders bringing in identified investors
  • Businesses issuing shares to select persons

Documents required

  • CIN & MOA/AOA
  • Cap table & investor details
  • Proposed issue price & amount
  • Financials for valuation
How it works

Simple, done-for-you process

A real Chartered Accountant handles the filing end-to-end.

1

Value & approve

Valuation obtained; special resolution passed.

2

Offer

PAS-4 offer letter issued to investors.

3

Receive & allot

Funds received; shares allotted.

4

File

PAS-3 & MGT-14 filed; registers updated.

FAQs

Common questions

Preferential allotment is a private placement of shares to selected identified persons. In practice, for most fundraises the terms are used together and follow the same compliant process.

Yes — shares must generally be issued at a price justified by a registered valuer’s report. We coordinate the valuation.

Mainly the PAS-4 offer letter, a special resolution (MGT-14) and the return of allotment (PAS-3). We handle them.

Private-placement funds must go into a separate designated bank account until allotment. We guide you on this.

Related

Related services

Raise your round compliantly.

Preferential allotment handled end-to-end — valuation to filing.

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