What are "letters of allotment" and "letters of regret" in the context of share issuance?

Letters informing recipients about share allotment or non-allotment

In the context of share issuance, "letters of allotment" and "letters of regret" are official communications sent by the company to the applicants who have applied for shares during a public offering. These letters play a vital role in communicating the outcome of the share allotment process to the applicants.
Letters of Allotment: These letters are sent to the applicants who have been successfully allotted shares. They serve as formal notifications that the company has assigned a specific number of shares to the recipient. The letter typically includes details about the number of shares allotted, the issue price, payment instructions, and any other relevant information. Once an applicant receives a letter of allotment, they become shareholders of the company and are legally bound by the terms outlined in the letter.
Letters of Regret: These letters are sent to the applicants who have not been allotted any shares. They communicate that the applicant's request for shares has not been fulfilled due to various reasons, such as oversubscription (demand exceeding supply) or other allocation criteria. While receiving a letter of regret means the applicant won't become a shareholder, it's a formal acknowledgment of their interest in the company's shares.