Preferential Allotments Advisory
Gain an Early-Mover Advantage in Strategic Equity Offers
Preferential allotments are private share placements made by a company to select investors — often at prices lower than market value and with limited public access. These offers can be highly strategic if timed right.
At Growin, we help clients evaluate, negotiate, and participate in these exclusive opportunities.
Why Preferential Issues are Valuable
Attractive Entry Point
Shares are typically issued at a discount, offering immediate upside potential
Limited Dilution
Unlike large public issues, preferential allotments often involve small equity expansion — preserving value
Access to Strategic Growth
Usually undertaken by companies raising capital for expansion, M&A, or product scale
Our Strategic Process
We evaluate each deal based on
Company fundamentals and capital usage plan
Regulatory compliance and SEBI guidelines
Lock-in periods, dilution impact, and shareholding patterns
Peer valuation benchmarking
Our team coordinates legal, compliance, and fund-flow processes so clients can focus solely on decision-making.
Real-World Example
In 2022, several investors who participated in Adani Enterprises’ preferential issue at strategic pricing saw notable upside as sector momentum picked up. However, such success hinges on deal quality — and that’s where our due diligence comes in.
Key Considerations
- Lock-in Periods : Most allotments come with 6–12 month lock-in.
- Not All Are Equal : Offers must be carefully filtered to avoid low-quality or promoter-favoring deals.
- Ideal for Patient Capital: These aren’t for quick exits but long-term positioning.
Ideal For
- HNIs, Family Offices, and long-term equity investors
- Clients interested in strategic company ownership
- Those looking for private, high-potential equity entry