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 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. Shares issued at discount in other cases is void as per the Companies Act.

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

As a general rule, a company cannot ordinarily issue shares at a discount. It can do so only in cases such as ‘reissue of forfeited shares’ and issue of sweat equity shares.