Question

Tinkers Ltd., issued a prospectus inviting applications for 40,000 equity shares of Rs.100 each. The whole issue was fully underwritten by three underwriters as follows: Mani -20,000 sahres; Paul - 14,000shares; Ganesh - 6,000 shares. Applications were received for 32,000 shares of which marked applications were as follows; Mani - 15,200 shares; Paul - 8,080 shares; Ganesh - 6,720shares. Show how the liability of the underwriters is computed.​

Answer 1

Explanation:

underwritten by three underwriters as follows: Mani -20,000 sahres; Paul - 14,000shares; Ganesh - 6,000 shares. Applications were received for 32,000 shares of which marked applications were as follows; Mani - 15,200 shares; Paul - 8,080 shares; Ganesh - 6,720shares. Show how the liability of the underwriters is computed.