Question

what is pro Rata allotment of shares? explain with example​

Answer 1

Hey mate!!

Pro Rata allotment of shares means allotment of shares in a fixed proportion . Pro-rata allotment take place only when the public issue of shares is oversubscribed .

for example: A company issued 60,000 shares, receives applications for 2, 40,000 shares and makes pro-rata allotment. This will mean that applicants have been allotted 25% of the shares applied.

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Answer 2

Answer:

When issue is over-subscribed, the company will have to allot shares on Pro-rata basis. It means that smaller number of shares are allotted to each applicant according to the number of shares applied by him. For example, in case a company has offered, 1,00,00 shares to the public but the public has applied for 2,00,000 shares, pro-rata allotment will be made in the proportion of 1 : 2.

Explanation:

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