# Public Offer vs. Private Placement — Quick Comparison
A frequent MCQ and short-note question in CA Inter Law. The two modes of raising capital differ across scope, timing, refund consequences, and reporting.
## Comparison Table
| Parameter | Public Offer | Private Placement |
|---|---|---|
| Offer to | Public at large | Maximum 200 identified persons in a financial year |
| Allotment time limit | 30 days (Section 39) | 60 days (Section 42) |
| Refund time limit (if not allotted) | 15 days | 15 days |
| Interest on delayed refund | 15% p.a. | 12% p.a. |
| Return of allotment | Within 30 days | Within 15 days (in form PAS-3) |
## Reading the Table
- Allotment is faster for public issues (30 days) because the regulatory architecture (SEBI, stock exchanges) compresses the timetable. Private placement gets 60 days because it is a negotiated, smaller-scale issue.
- Refund window is identical (15 days) regardless of mode — this is the time the company gets to return money after the allotment deadline expires.
- Interest rate is higher for public issues (15% vs 12%) because public retail investors are presumed to need stronger protection.
- Counter-intuitively, return of allotment is filed faster in private placement (15 days vs 30 days for public issues) — because no money can be utilised until PAS-3 is filed.
## Memory Aid
> Public = 30/15/15/30 ; Private = 200/60/15/12%/15