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how we calculate minimum subcription on ipo

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Querist : Anonymous

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Querist : Anonymous (Querist)
31 July 2012
dear all ,
a public co. cannot issue their shares until 90% of minimum subscription received.
how we calculate 90%
is it on application money or whole of share value
say co.co ipo 10k shares @ 100 each and on application rs 10 so minimum subscription will be 10k*10*90% = 90000
plz explain

thanks in advance
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CA Lokesh Pokharna

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CA Lokesh Pokharna (Expert)
31 July 2012 The minimum shares the company needs to get from the public out of the total issue by the date of closure. (Presently every company need to raise 90% of the issued amount). Else, the company shall refund the whole amount received. This 90 % has to be exclusive of the cheques that are not cleared.

in your case it will be 10000x100x90%=9 lac
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