26 August 2009
promoters contribution in public issue as per law
public issue by unlisted company is 20% of the post issue capital
and it also written minimum contribution of rs 25000 per application from each individual and minimum contribution of rs 1 lac from firms and companies shall the eligible to be considered towards promoters contribution
if where promoters minimum contribution exceeds rs 100 crore the promoters shall bring rs 100 crore before opening of the issue and the remaining contibution shall be brought in by the promoter in advance on pro rata basis before the calls are made to the public.
QUERY: 1)what is the meaning of post issue capital? 2)exaplain briefly "minimum contribution of rs 25000 per application from each individual and minimum contribution of rs 1 lac from firms and companies shall the eligible to be considered towards promoters contribution"
3)explain brieflywith example "in advance on pro rata basis before the calls are made to the public."
26 August 2009
If the paid up caiptal is say Rs 10,000 it makes a pulic issue of Rs 5,000 them post issue capital will be Rs15,000 This relate to promoters quota share applications wherein if an individual is applying then the minimum amount should be Rs25,000/- per share appliocation in any other case it will be Rs1,00,000/- Pro rata means proportionate
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