Question

Sun India Ltd. invited applications for issuing equity shares of ₹ 10 each at a premium of 10%. The premium was payable on allotment. Because of over-subscription, all the applicants were divided into three categories for the purpose of allotment: Category I - Applications for 1,00,000 shares were allotted shares in full. Category II - 3,00,000 shares were allotted to the applicants of this category. For every 5 shares applied, 3 shares were allotted. Category III - 8,00,000 shares were allotted to the applicants of 12,00,000 shares. Amount payable per share was as follows: On Application - ₹ 2 per share On Allotment - ₹ 5 per share (including premium) On First and Final call - Balance Excess money received with applications was adjusted towards sums due on allotment.

How many shares were offered to the public for subscription?

विकल्प

• ₹ 12,00,000

• ₹ 24,00,000

• ₹ 14,00,000

• ₹ 30,00,000

Answer 1

₹ 12,00,000

Explanation:

Allotment to category I =	1,00,000
Allotment to category II =	3,00,000
Allotment to category III =	8,00,000
	12,00,000