Allotment of preference shares
This query is : Resolved
21 March 2015
Can we allot preference shares lower than the valuation amount? valuation done as per book value method.
21 March 2015
The fixed payment is in the form of a dividend and will be the basis of the valuation method for a preferred share.
21 March 2015
If it is shares allotted through preferential basis the valuation will be.
The issue of shares on a preferential basis can be made at a price not less than the higher of the following:
i) The average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the six months preceding the relevant date;
OR
ii) The average of the weekly high and low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the relevant date.
The issue of shares on a preferential basis can be made at a price not less than the higher of the following:
i) The average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the six months preceding the relevant date;
OR
ii) The average of the weekly high and low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the relevant date.
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