Question

Attire Ltd. issued a prospectus inviting applications for 12,000 shares of ₹10 each payable ₹3 on application, ₹5 on allotment and balance on a call. Public had applied for a certain number of shares and application money was received. Which of the following application money, if received restricts the company to proceed with the allotment of shares, as per SEBI guidelines?

विकल्प

• ₹36,000

• ₹45,000

• ₹30,000

• ₹32,400

Answer 1

₹30,000

Explanation:

12,000 shares of ₹10 each = ₹1,20,000

At least 90% of the issued amount must be subscribed.
= 90% of ₹1,20,000 = ₹1,08,000

minimum subscription of ₹1,08,000 → minimum application money = `108000/10 xx3 = 10800 xx 3 = 32400`

1. ₹36,000 → corresponds to 12,000 applied shares
2. ₹45,000 → over-subscription (15,000 shares)
3. ₹30,000 → corresponds to 10,000 shares → only ₹1,00,000 subscribed (<90%)
4. ₹32,400 → corresponds to 10,800 shares → exactly 90% subscribed

= ₹30,000