Question

Hira Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable with the application. Applications were received for 4,00,000 equity shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was ______.

पर्याय

• ₹ 22,00,000

• ₹ 20,00,000

• ₹ 24,00,000

• Nil

Answer 1

Hira Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable with the application. Applications were received for 4,00,000 equity shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was ₹ 22,00,000.

Explanation:

Total Amount per Share = Face Value + 10% Premium

= 10 + 1

= 11

Excess Shares Received = 4,00,000 − 2,00,000

= 2,00,000

Refund Amount = 2,00,000 × 11

= 22,00,000