There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-

Assertion: A company can issue ordinary shares at a discount to the public during an IPO.
Reasoning: A company can issue shares at a discount only in cases such as reissue of forfeited shares and issue of sweat equity shares.

Assertion (A) is not true but Reasoning (R) is correct.

The correct answer is option 4- Assertion (A) is not true but Reasoning (R) is correct..

Assertion: A company can issue shares at a discount to the public during an IPO. This is false. According to the Companies Act, 2013, a company generally cannot issue shares at a discount to the public during an Initial Public Offering (IPO).

Reasoning: A company can issue shares at a discount only in cases such as reissue of forfeited shares and issue of sweat equity shares. This is true.

There are instances when the shares of a company are issued at a discount, i.e. at an amount less than the nominal or par value of shares, the difference between the nominal value and issue price representing discount on the issue of shares. For example, when a share of the nominal value of Rs. 100 is issued at Rs. 98, it is said to have been issued at a discount of two percent. As a general rule, a company cannot ordinarily issue shares at a discount.

Thus, assertion is false and reasoning is true.