Read the passage carefully and answer the following questions.
XYZ Ltd is registered with an authorised capital of ₹20 lakh divided into 2 lakh equity shares of ₹10 each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue 1 lakh equity share of ₹10 each. The company issued 20,000 equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for 46,000 equity shares. Due to undersubscription of equity shares the shares were not issued to public.
In order to raise money by issuing the shares in the market the company must get applications for at least................
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 72,000 shares
Minimum subscription cannot be less than 90% of the issued amount. The amount offered to the public here is not the whole 1 lakh shares, because 20,000 shares go to the vendor and are not offered for subscription.
Shares offered to the public = 1,00,000 − 20,000 = 80,000 shares
Minimum subscription = 90% × 80,000 = 72,000 shares
The company received applications for only 46,000 shares, which is below 72,000, so the shares could not be allotted to the public, as the passage says.
NCERT (2026-27 edition):
|
