Allotment of Shares (Private Placement)
Facilitation of private placement of shares to select investors, ensuring compliance with legal and procedural requirements under the Companies Act, 2013.Plan Overview
Private Placement is a method by which a company can raise funds by issuing shares or other securities to a select group of investors (other than the public). This is governed by Section 42 of the Companies Act, 2013 and applies to both private and public companies. It allows companies to bring in strategic investors or raise capital without going through public offerings.Services Included
Form filing
Government Fess
Documents Required
Board Resolution for approval of private placement
Shareholders' Resolution (Special Resolution)
Private Placement Offer Letter in Form PAS-4
List of allottees with complete details
Valuation Report from a Registered Valuer (if required)
Application forms from the proposed allottees
Bank statement showing receipt of application money
Return of Allotment in Form PAS-3
Copy of offer letter sent to investors
MGT-14 (for filing of Special Resolution)
Process
10-15 Days Estimate
Step 1
Board Meeting: Convene a board meeting to approve the private placement and draft offer letter.
Step 2
Shareholder Approval: Pass a special resolution in a general meeting and file MGT-14 with the Registrar.
Step 3
Circulate PAS-4: Send the Private Placement Offer Letter to the proposed investors.
Step 4
Receive Application Money: Collect money only via banking channels—cheques, demand drafts, or other banking modes. Cash is not allowed.
Step 5
Allotment of Shares: Within 60 days of receiving the money, allot the shares to investors.
Step 6
Filing with ROC: File PAS-3 (Return of Allotment) within 15 days of allotment.
Step 7
Share Certificates: Issue share certificates to the allottees within the prescribed time.
Recommended For
Companies raising capital through private investors or strategic partners.
Review
Average Rating4.8