Question

Diksha Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at a premium of 10%. The whole amount was payable on application. Applications were received for 3,00,000 equity shares. The company decided to allot the shares on pro rata basis to all the applicants. The amount refunded by the company was

Options

• ₹ 22,00,000.

• ₹ 33,00,000.

• ₹ 11,00,000.

• ₹ 20,00,000.

Answer 1

₹ 22,00,000.

Explanation:

Issue price per share = ₹ 10 + 10% premium = ₹ 11.

Excess applications = 3,00,000 − 1,00,000 = 2,00,000 shares.

Therefore, amount refunded = 2,00,000 × ₹ 11 = ₹ 22,00,000.