Based on following answer the question.

Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, Rs 3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money excepts allotment money on 5,000 shares held by Rahul. His shares were forfeited.

In the case of Bharat Limited the shares have been :

Under subscribed

The correct answer is Option (3) - Under subscribed.

Application issued for =  3,00,000 shares of ₹10 each
Application received = 2,70,000 shares
Under subscription = 300000 - 270000
                            = 30000

Under subscription arises when there are fewer requests for a company's shares than the available shares. This often occurs when the company lacks recognition or has a weak financial track record.