I am a tata steel share holder.
I want to know what is the difference between Fully Paid up & Partially Paid shares.
As per my knowledge, in case of fully paid there is no need to pay again whereas in case of partially paid there will be a call money request in future to pay the further amount.Correct me if I am wrong
As per the offer, it is offering Fully Paid shares at 510 whereas 615 for partially paid.
I want to know why partly paid share is costlier than fully paid.Any specific reason??
Can Anyone reply to this
Companies issue shares at face value Rs 10, with or without premium. If the face value is accepted in parts, the shares become partly paid up, till the full face value is received by taking application money, first call or Final call money from investors.
The Issue Price per Partly Paid Shares shall be payable as follows:
Previously total face value (say ₹10) is divided into various parts like application money (₹2.504) & after allotment company ask for first and Final call (₹7.496) to make it fully paid up (₹2.504+₹7.496).
Until the total amount gets received by the company it stays partly paid up. The Company would fix a record date giving at least seven working days prior notice to the Stock Exchanges for the purpose of determining the list of Ordinary Shareholders to whom the notice for First and Final Call would be sent. Once the Call Record Date has been fixed, trading in the Partly Paid Shares for which the First and Final Call has been made may be suspended prior to Call Record Date.
Partly paid share is costlier than fully paid becuse of time value and premium.
Right now other than this there are partly paid shares issues and traded are of India bulls venture . till few weeks before there were partly paid shares of Kanpur plast too but now fully paid.
Partly paid share are listed under a separate code ,separate group and have a different ISIN than fully paid share and are thinly traded as not many broker entertain trade in this group.
partly paid share are not costly as such but may appear because of traded price difference in partly paid and fully paid also because buyer of partly paid share have time to make payment till company calls the remaining amount so less investment as of now.