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What do you mean by share allotment letter?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

What do you mean by share allotment letter?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

A letter of allotment is intimation from the Company to the applicant that certain number of shares applied for by him, have been allotted. The allottee has to preserve the letter of allotment in order to exchange it against the share certificate. It is issued by the company when the shares are allotted to the applicant in response to the public issue or rights issue of the company.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**SHARE ALLOTMENT LETTER** A letter of allotment is intimation from the Company to the applicant that certain number of shares applied for by him, have been allotted. The allottee has to preserve the letter of allotment in order to exchange it against the share certificate. It is issued by the company when the shares are allotted to the applicant in response to the public issue or rights issue of the company. It states that certain number of shares is allotted, and that the amount in respect of allotment, if any, should be paid within a particular period. It is sent to the share applicants to whom shares are allotted. If the shares are fully allotted, then a refund order for the unalloted shares is enclosed. The share certificates may also be enclosed. Thanks

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