What are preferential allotments Share ?

What are preferential allotments Share ? - Recently "[highlight]preferential allotments Share[/highlight] " was very much in news, as Government has planned to infuse Rs 25,000 crore in different public sector bank on preferential basis.Read the story [highlight]here.[/highlight] What is Share Allotment on Preferential basis ? In general we define the share allotment on preferential basis when company decided to allot their entire allotment to pre-identified people, who may or may not be existing shareholders of the company, at a pre-determined price....