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Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares?
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Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided...
Sparsh Mart Ltd. Allotment of Shares
Introduction
Sparsh Mart Ltd., a company operating in Ahmedabad, has decided to expand its operations in two other states. To raise the necessary funds for expansion, the company invited the general public to subscribe for its public issue of Rs. 50 crores through an initial public offer (IPO). The company received applications for shares amounting to Rs. 40 crores.
Can the company go for allotment of shares?
Yes, the company can go for allotment of shares. The total amount of applications received is Rs. 40 crores, which is less than the required Rs. 50 crores. Therefore, the company can proceed with the allotment of shares.
Explanation
The company issued a public offer of Rs. 50 crores, inviting the general public to subscribe for shares. The general public responded by submitting applications for shares amounting to Rs. 40 crores. Since the total applications received are less than the required amount, the company can proceed with the allotment of shares.
Allotment Process
The allotment process involves the distribution of shares among the applicants based on certain criteria. The company must follow the rules and regulations set by the regulatory authorities, such as the Securities and Exchange Board of India (SEBI), while allotting shares.
Criteria for Allotment
The company may use various criteria to determine the allotment of shares. Some common criteria include:
1. Pro-rata Basis: The company may choose to allot shares on a pro-rata basis, where each applicant receives shares in proportion to the number of shares applied for.
2. Random Selection: The company may opt for a random selection process, where the allotment of shares is determined by a computerized lottery system.
3. Priority Basis: The company may give priority to certain categories of applicants, such as existing shareholders, employees, or qualified institutional buyers.
Conclusion
In this case, Sparsh Mart Ltd. can proceed with the allotment of shares as it has received applications for shares amounting to Rs. 40 crores, which is less than the required Rs. 50 crores. The company must follow the appropriate criteria for allotment as per the regulatory guidelines to ensure a fair and transparent process.
Introduction
Sparsh Mart Ltd., a company operating in Ahmedabad, has decided to expand its operations in two other states. To raise the necessary funds for expansion, the company invited the general public to subscribe for its public issue of Rs. 50 crores through an initial public offer (IPO). The company received applications for shares amounting to Rs. 40 crores.
Can the company go for allotment of shares?
Yes, the company can go for allotment of shares. The total amount of applications received is Rs. 40 crores, which is less than the required Rs. 50 crores. Therefore, the company can proceed with the allotment of shares.
Explanation
The company issued a public offer of Rs. 50 crores, inviting the general public to subscribe for shares. The general public responded by submitting applications for shares amounting to Rs. 40 crores. Since the total applications received are less than the required amount, the company can proceed with the allotment of shares.
Allotment Process
The allotment process involves the distribution of shares among the applicants based on certain criteria. The company must follow the rules and regulations set by the regulatory authorities, such as the Securities and Exchange Board of India (SEBI), while allotting shares.
Criteria for Allotment
The company may use various criteria to determine the allotment of shares. Some common criteria include:
1. Pro-rata Basis: The company may choose to allot shares on a pro-rata basis, where each applicant receives shares in proportion to the number of shares applied for.
2. Random Selection: The company may opt for a random selection process, where the allotment of shares is determined by a computerized lottery system.
3. Priority Basis: The company may give priority to certain categories of applicants, such as existing shareholders, employees, or qualified institutional buyers.
Conclusion
In this case, Sparsh Mart Ltd. can proceed with the allotment of shares as it has received applications for shares amounting to Rs. 40 crores, which is less than the required Rs. 50 crores. The company must follow the appropriate criteria for allotment as per the regulatory guidelines to ensure a fair and transparent process.
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Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares?
Question Description
Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares?.
Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares?.
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Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares?, a detailed solution for Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? has been provided alongside types of Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited , general public to subscribe for its public issue of Rs. 50 crores through an initial public offer. It received applications for shares of Rs. 40 crores. can company go for allotement of shares? theory, EduRev gives you an
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