Issue of Shares:The issue of shares is the procedure in which enterprises allocate new shares to the shareholders. Shareholders can be either corporates or individuals. The enterprise follows the rules stipulated by Companies Act 2013 while circulating the shares. The Issue of Prospectus, Receiving Applications, Allocation of Shares are 3 key fundamental steps of the process of issuing the shares. The procedure of Issue of New Shares:1. Issue of Prospectus:Before the issue of shares, comes the issue of the prospectus. The prospectus is like an invitation to the public to subscribe to shares of the company. 2. Receiving Applications:When the prospectus is issued, prospective investors can now apply for shares. They must fill out an application and deposit the requisite application money in the scheduled bank mentioned in the prospectus. Application money is the money received by the company when it issues shares to the public, once the application money is received then allotment is made to the shareholders. The minimum share application money is 5% of the nominal value of shares. 3. Allotment of Shares:Once the minimum subscription has been reached, the shares can be allotted. Therefore, the minimum amount called on an application for the issue of shares is 5% of face value.