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Partly paid shares are equity shares for which a portion of the total face or issue value is paid at the time of allotment. The remaining amount is collected in one or more calls by the company in the future.
Example: If a share is issued at ₹100, an initial payment of ₹25 occurs, with the balance of ₹75 collected via “calls”.
Partly paid shares are issued with only a portion of the total share price payable at the time of allotment, while the remaining amount is collected later in stages. This structure establishes ownership before the full issue price is paid.
For partly paid equity shares, the process generally involves:
An issue price defined by the company
An initial payment at allotment
One or more future payments, known as calls, with specified timelines
The shares remain partly paid until all call amounts are settled. After completion of all payments, they are converted into fully paid equity shares with standard shareholder rights. Failure to meet call payment timelines may lead to penalties or forfeiture, as per the issue terms.
Partly paid shares are structured in a way that affects how capital is deployed and managed over time. The following characteristics are observed in these instruments:
Only a portion of the total issue price is payable at the time of allotment. This involves a smaller initial payment compared to fully paid equity shares.
The remaining amount is collected through scheduled calls over time. This staged structure distributes the financial commitment across multiple periods instead of a single upfront payment.
Partly paid shares are listed and traded on stock exchanges. Price movements are reflected in market trading even before all call amounts are paid.
Together, these aspects describe the structural features of partly paid shares that differentiate them from fully paid equity instruments.
Participants are required to meet future payment obligations as per the issue terms. Missing a call can result in interest penalties and, in specified cases, forfeiture of shares by the company.
Due to differing liquidity and speculative trading patterns, partly paid shares exhibit volatility compared to fully paid shares.
Dividend entitlements are limited or conditional for partly paid shares. Full dividend occurs only after the shares become fully paid.
Partly paid shares follow a defined market and settlement framework, similar to other listed equity instruments, with additional payment obligations linked to future calls.
The process generally involves the following steps:
Identification on stock exchanges:
Partly paid shares are listed separately from fully paid shares and are typically identified by a suffix such as “PP” in the trading symbol.
Purchase through a brokerage account:
These shares can be bought on stock exchanges using a Demat and trading account, following standard order placement procedures.
Awareness of call schedules:
The issuing company announces timelines and amounts for future calls, which are communicated through exchange filings and corporate announcements.
Settlement of future calls:
Shareholders are required to pay call amounts within the specified deadlines to retain ownership and avoid penalties or forfeiture.
Understanding how partly paid shares are identified, traded, and paid for over time provides clarity on the operational aspects involved in holding such instruments.
Partly paid shares are issued by companies during rights issues or public offerings, in scenarios involving staged fund collection for projects or expansions.
Partly paid shares operate as a structure within equity markets involving phased capital commitments. The process includes future call obligations and potential share forfeiture under specified conditions. This structure appears in certain capital-raising scenarios.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Partly paid shares are issued with only a portion of the total issue price paid at allotment, while fully paid shares have the entire issue price paid upfront. The unpaid balance in partly paid shares is collected later through scheduled calls.
Payment is made in stages. An initial amount is paid at the time of allotment, and the remaining balance is collected through future calls announced by the issuing company, each with specified amounts and deadlines.
Partly paid shares generally trade at a lower absolute price than fully paid shares of the same company, reflecting the unpaid portion of the issue price and differences in liquidity and payment obligations.
Partly paid shares are listed separately on stock exchanges and are typically identified by a distinct suffix, such as “PP,” added to the company’s trading symbol.
Dividend entitlement for partly paid shares depends on the company’s dividend policy and the amount paid on the shares. In some cases, dividends may be adjusted in proportion to the paid-up value.
Partly paid shares are equity instruments where investors pay only a portion of the share’s total issue price upfront. The remaining amount is collected later through scheduled calls made by the company.
Yes, these shares are listed separately on stock exchanges and often carry a suffix like “PP” in their trading symbol. This helps investors distinguish them from fully paid equity shares.
Non-payment of a call can result in penalties or forfeiture, depending on the company’s articles of association and the conditions stated in the offer documents.
With a Postgraduate degree in Global Financial Markets from the Bombay Stock Exchange Institute, Nupur has over 8 years of experience in the financial markets, specializing in investments, stock market operations, and project management. She has contributed to process improvements, cross-functional initiatives & content development across investment products. She bridges investment strategy with execution, blending content insight, operational efficiency, and collaborative execution to deliver impactful outcomes.
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