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Home > My Calculators > Capital / Shareholding Expansion through Preferential Allotment



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The preferential allotment of shares by a company expands the shareholding of allottee as well the total capital of the company. The total capital after preferential allotment of shares is called expanded capital. As per the clarifications given by the Securities and Exchange Board of India, ... More info
The preferential allotment of shares by a company expands the shareholding of allottee as well the total capital of the company. The total capital after preferential allotment of shares is called expanded capital. As per the clarifications given by the Securities and Exchange Board of India, for the purpose of SEBI Takeover Regulations, the percentage increase in the shareholding of allotees pursuant to preferential allotment is calculated with reference to the expanded capital i.e. the capital after the preferential allotment. Therefore, this calculator calculates the maximum number of shares that can be allotted keeping the post preferential shareholding (calculated on the basis expanded capital), within the acquisition limits specified under SEBI Takeover Regulations for triggering open offer requirement. In addition to this, the preferential allotment of shares by the company reduces the percentage shareholding of shareholders other than allottees. Therefore, this calculator also tells the impact of preferential allotment on the shareholding of a shareholder who is not the allottee.... Close

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Name of the Stock Exchange on which the shares of Target Company are Listed