Partly paid shareholders only need to pay 30 rs as last tranche before it gets converted to fully paid shares.
The difference between fully and partly paid shares should ideally not be more or less than Rs. 30.
If you are an investor in the fully paid shares, and If the difference between fully and partly paid shares is more than Rs.30, you are better off selling fully paid shares and buying partly paid shares.
This difference can be invested elsewhere (example fixed income, etc) and when management calls for the money, it can be paid pocketing any additional returns you get on the difference amount up till then.
Additionally, partly paid shares have inherent leverage, and should give more returns on upside, and lower returns on downside compared to fully paid shares.
However caution is needed since partly paid shares are relatively less liquid compared to fully paid up shares at this point, despite there being 2 partly paid up shares outstanding for each fully paid up share.
| Subscribe To Our Free Newsletter |
