Question

Alfa Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was ______.

Options

• ₹32,50,000

• ₹15,60,000

• ₹39,00,000

• ₹26,00,000

Answer 1

Alfa Ltd. invited applications for 50,000 equity shares of ₹ each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was ₹26,00,000.

Explanation:

Issue price per share = ₹10 (face value) + ₹3 (premium) = ₹13

Applications received = 2,50,000 shares × ₹13 = ₹32,50,000

Issued shares = 50,000 × ₹13 = ₹6,50,000

Refund = Application money received – Application money adjusted

= ₹32,50,000 – ₹6,50,000

= ₹26,00,000