Oversubscription

If an IPO is oversubscribed,what int rate should the company pay to investors.Pls very urgent

Replies (1)

Hope you can find it appropriate.............

Sec. 73. Allotment of shares and debentures to be dealt in on stock exchange

[(2A) Where permission has been granted by the recognized stock exchange or stock exchanges for dealing in any shares or debentures in such stock exchange or each such stock exchange and the moneys received from applicants for shares or, debentures are in excess of the aggregate of the application moneys relating to the shares or debentures in respect of which allotments have been made, the company shall repay the moneys to the extent of such excess forthwith without interest, and if such money is not repaid within eight days, from the day the company becomes liable to pay it, 8[the company and every director of the company who is an officer in default shall, on and from the expiry of the eighth day, be jointly and severally liable to repay that money with interest at such rate, not less than four per cent and not more than fifteen per cent, as may be prescribe, having regard to the length of the period of delay in making the repayment of such money.]

If default is made in complying with the provisions of sub-section (2A), the company and every officer of the company who is an default shall be punishable with fine which may extend to 11[fifty thousand rupees], and where repayment is not made within six months from the expiry of the eighth day, also with imprisonment for a term which may extend to one year.]

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