Question

Vinod Limited application for 20000 equity shares of Rs 10 each at a premium of 20% application were receive 2.5 times. Out of which 40% application were rejected, full allotment was made to 8000 application and pro-rota allotment was made to the remaining applicant. One shareholder Yuvraj holding 300 shares on Pro Rata basis. Yuvraj has applied for ______ share.

Answer 1

Answer:

Total Application received = 20000*2.5 = 50000

40% of 50000 means 20000 application were rejected

8000 applicants were alloted 8000 shares

out of total applicants of 50000 , 20000 were rejected and 8000 were alloted full shares so remaining applicants 22000 were alloted remaining shares (20000-8000) = 12000 shares on pro rata basis

12000 shares alloted to 22000 applicants

so Yuvraj applied for = 22000/12000*300= 550