Allotment of preference shares

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kunjal sharma

kunjal sharma (Querist)
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21 March 2015 Can we allot preference shares lower than the valuation amount? valuation done as per book value method.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

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Allotment of preference shares

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