CS Arjun Rajagopal (B.com, ACS) (1056 Points)
27 August 2016Dear CCI Members,
Please advise the rights issue ratio calculation from the following figures:_
Existing fully paid up shares :30,70,410
No. of shares to be issued :6,57,500
Amount to be raised :Rs. 65,75,000
No. of shareholders: 19
It would be much helpful if calcualtion formula can be mentioned
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 29 August 2016
You can offer 2 shares against every 10 shares held ignoring fractions. Rights offer can also have option to apply for additional shares and renounce the right, subject to provisions in the Articles. Resolution can give power to the Board/Committee to allot remaining shares in the manner deemed fit.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
