Question

A public company invites general public to subscribe for its public issue. However the company
was unable to receive the minimum subscription. Can the company proceed with allotment of
shares? State the limit of minimum subscription required by a company?

Answer 1

Gd mrng bro have a nice day ahead

Answer 2

No, the company cannot & the minimum subscription is equal to 90% of the issued amount.

Explanation:

No, the company cannot proceed with the allotment of shares because it is mandatory for each and every company to meet the minimum subscription.

The limit of minimum subscription is 90%.

The subscription remains to open up to 120 days. The company shall refund the application with 130 days of the issue of a prospectus in case the minimum subscription has not been reached.