Issuance Of Share In Case Of IPO

1. What is the basis of allotment of shares in case of IPO? 2. Who decides the names of applicants to be allotted in case of an IPO the issuer Co, RTA, the exchange or LM? 3. In the case of pro-rata basis how to calculate the ratio? Can you solv... Read More

1. What is the basis of allotment of shares in case of IPO? 2. Who decides the names of applicants to be allotted in case of an IPO the issuer Co, RTA, the exchange or LM? 3. In the case of pro-rata basis how to calculate the ratio? Can you solve my above query?
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Answer (1)

Harini S

Harini S

  • Sector-1, Noida

The basis of allotment of shares in IPO is as per the SEBI guidelines. The bids received are aggregated under different categories. For calculating pro- rata share you need to calculate by dividing the ownership of each person by total numbers of share and then multiplying the resulting fraction by the total amount of the dividend payment.

For further clarification you can consult an expert corporate law lawyer in India, who will advice you better in your matter.

Answered on 29 Mar 2019


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