Dear 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
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.
CAclubindia
