33. Sunrisers India Ltd. was registered with an authorised capital of ₹ 1,00,00,000 divided into 1,00,000 equity shares of ₹ 100 each. The company offered for public subscription 60,000 equity shares at a premium of Rs. 10 per share. Applications for 55,000 shares were received and allotment was made to?

Question

Answer

Calculation of shares allotted:

Total number of shares offered for public subscription = 60,000

Applications received for shares = 55,000

Hence, the company has to allot 55,000 shares

Calculation of amount received:

Face value of each share = ₹100

Premium per share = ₹10

Total amount received per share = ₹100 + ₹10 = ₹110

Total amount received for 55,000 shares = ₹110 × 55,000 = ₹6,05,00,000

Procedure for allotment:

The company will first reject the applications for 5,000 shares as the number of shares applied for exceeds the number of shares offered, and the allotment will be made for 55,000 shares only.

The company will then allot shares to the remaining applicants on a pro-rata basis. This means that each applicant will be allotted shares in proportion to the number of shares applied for.

The amount paid on application will be adjusted against the amount payable on allotment.

The company will then send allotment letters to the successful applicants indicating the number of shares allotted and the amount payable on allotment.

The company will also refund the excess amount paid on application to the unsuccessful applicants.

Therefore, Sunrisers India Ltd. will allot 55,000 equity shares at a premium of Rs. 10 per share to the applicants who applied for shares. The allotment will be made on a pro-rata basis, and the amount paid on application will be adjusted against the amount payable on allotment. The company will refund the excess amount paid on application to the unsuccessful applicants.

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