As per the Companies Act, 2013, a public or private company may issue securities in any of the following manner:
Public Company
To public through issue of Prospectus
Private Placement
Rights Issue or a Bonus Issue
Private Company
Rights or Bonus Issue
Private placement
Private Placement means any offer of securities or invitation to subscribe securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through issue of private placement offer letter and which satisfies the conditions as specified in Section 42 of the Companies Act, 2013.
The Right issue of shares means issue when new shares are offered to the existing shareholders in proportion to their current shareholding. The Right Issue of shares is governed by Section 62 of the Companies Act, 2013.
The procedure for allotment is different in all the above stated cases. For detailed procedure please contact compliance advisor team.