query regarding promoter contribution in public issue

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karan (Querist)

26 August 2009 promoters contribution in public issue as per law

public issue by unlisted company is 20% of the post issue capital

and it also written minimum contribution of rs 25000 per application from each individual and minimum contribution of rs 1 lac from firms and companies shall the eligible to be considered towards promoters contribution

if where promoters minimum contribution exceeds rs 100 crore the promoters shall bring rs 100 crore before opening of the issue and the remaining contibution shall be brought in by the promoter in advance on pro rata basis before the calls are made to the public.

QUERY:
1)what is the meaning of post issue capital?
2)exaplain briefly "minimum contribution of rs 25000 per application from each individual and minimum contribution of rs 1 lac from firms and companies shall the eligible to be considered towards promoters contribution"

3)explain brieflywith example "in advance on pro rata basis before the calls are made to the public."

thanks in advance

M Prabhakar Menon

M Prabhakar Menon (Expert)

26 August 2009 If the paid up caiptal is say Rs 10,000 it makes a pulic issue of Rs 5,000 them post issue capital will be Rs15,000
This relate to promoters quota share applications wherein if an individual is applying then the minimum amount should be Rs25,000/- per share appliocation in any other case it will be Rs1,00,000/- Pro rata means proportionate

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