Letter of Allotment of Shares

2. Letter of Allotment of Shares

When it is written: once the Board of Directors has passed a resolution allotting shares to applicants (and, where required, the return of allotment has been filed with the Registrar under Section 39), the Company Secretary sends every successful applicant a letter of allotment. This is the document by which an applicant, who has so far only made an offer to take shares, actually becomes a member of the company.

What a letter of allotment must state:

• the number of shares allotted (which may be less than the number applied for, in a case of over-subscription with proportionate/pro-rata allotment);
• the distinctive numbers of the shares allotted and the folio number under which they are entered in the Register of Members;
• the amount already paid (application money, and application-cum-allotment money where the two were combined) and any balance still payable, together with the due date(s) of any call(s);
• a request to note that the share certificate will follow in due course (or, for a dematerialised holding, that the shares will be credited to the applicant's demat account through the Depository); and
• where the application was for more shares than allotted, an intimation that the excess application money has been adjusted towards the allotment money and/or a future call, or refunded, as the case may be.

Statutory backing: Section 39 of the Companies Act, 2013 requires that shares be allotted only after the minimum subscription stated in the offer document has been received, and that the amount payable on application be not less than 5% of the nominal value of the share; a Return of Allotment (Form PAS-3) must be filed with the Registrar within 30 days of the allotment.

Specimen letter of allotment of shares:

SAHYADRI TEXTILES LIMITED
Regd. Office: 88, Shivaji Nagar, Kolhapur - 416 003
CIN: L17110MH2010PLC201456

Ref. No. STL/CS/2025-26/212                                    Date: 14th July, 2025

To,
Mr. Suresh N. Patil
204, Ashirwad Apartments, Rajarampuri,
Kolhapur - 416 008

Dear Sir,

Sub: Allotment of Equity Shares

With reference to your application for 500 Equity Shares of Rs. 10 each of the Company, we are pleased to inform you that the Board of Directors, at its meeting held on 10th July, 2025, has allotted you 400 Equity Shares of Rs. 10 each, bearing Distinctive Nos. 441201 to 441600, under Folio No. STL-06214. …