What are partly paid shares?

Partly paid shares are a type of equity where you, as an investor, pay only a part of the total share price at the time of allotment. The remaining amount is collected by the company later, in one or more calls - formal requests for payment. This structure allows you to enter the market with lower upfront investment while still gaining exposure to the company’s growth. However, it also means you're obligated to pay the remaining amount when the company makes a call, so it's important to plan your finances accordingly.

Example: Suppose a company issues shares at ₹1,000 each. At the time of allotment, you may need to pay only ₹300. The remaining ₹700 can be called by the company later, either in one go or in instalments. Until you clear the dues, the shares remain “partly paid”.

These are common in large IPOs and are ideal for investors seeking flexibility in capital deployment.