{"id":26409,"date":"2026-04-03T19:22:21","date_gmt":"2026-04-03T19:22:21","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26409"},"modified":"2026-04-03T19:22:34","modified_gmt":"2026-04-03T19:22:34","slug":"what-is-a-preferential-allotment","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-a-preferential-allotment\/","title":{"rendered":"What Is a Preferential Allotment?"},"content":{"rendered":"\n<p>A preferential allotment is when a company issues shares directly to a select group of investors such as promoters, institutions, or strategic partners at a fixed price. It is not open to all shareholders.<\/p>\n\n\n\n<p>Companies use this route to raise capital quickly or bring in a specific investor without going through a public offering. The allotment price is regulated by SEBI and cannot be set arbitrarily it is based on the average market price over a specified period.<\/p>\n\n\n\n<p>As an existing shareholder, you won&#8217;t receive anything in a preferential allotment but you will be affected. Since new shares are being issued, your ownership percentage in the company reduces slightly. This is called dilution.<\/p>\n\n\n\n<p>The shares issued through preferential allotment also come with a lock-in period meaning the investors who received them cannot sell immediately. This is a SEBI requirement to prevent quick exits after allotment.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2871],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26409"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26409"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26409\/revisions"}],"predecessor-version":[{"id":26411,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26409\/revisions\/26411"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26409"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26409"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}