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................

72,000 shares

The correct answer is option 3- 72,000 shares.

1 lakh equity shares are issued. Out of which 20,000 are given to vendor means 80,000 shares are given to general public.
90% minimum subscription must be received by the company to proceed for the allotment of shares i.e. 90% of 80,000 shares
= 80,000 x 90/100
= 72,000 shares

Thus, 72,000 shares are required to be subscribed by the public to proceed by the company.