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What is Preferential Allotment?

Preferential Allotment — Issuing shares (or warrants) to a select group of investors at a set price, often to promoters or strategic partners.

In simple terms

A preferential allotment can bring in a strategic investor.

Why Preferential Allotment matters when you invest

Understanding preferential allotment helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.

Preferential Allotment — frequently asked questions

What is Preferential Allotment?

Issuing shares (or warrants) to a select group of investors at a set price, often to promoters or strategic partners.

What does Preferential Allotment mean in the stock market?

Issuing shares (or warrants) to a select group of investors at a set price, often to promoters or strategic partners. A preferential allotment can bring in a strategic investor.

Can you give an example of Preferential Allotment?

A preferential allotment can bring in a strategic investor.

Put it into practice — open a free account.

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