Sangam Ltd. came up with public issue of 3,00,000 Equity Shares of ₹ 10 each at ₹ 15 per share. P, Q and R took underwriting of the issue in the ratio of 3:2:1 with the provisions of firm underwriting of 20,000, 14,000 a

Calculation of Liability of each Underwriter (in shares) (Assuming the benefit of firm underwriting is not given to individual underwriters) Particulars P Q R Total Gross Liability 1,50,000 1,00,000 50,000 3,00,000 Less: Marked Applications excluding firm underwriting (60,000) (50,000) (60,000) (1,70,000) Balance 90,000 50,000 (10,000) 1,30,000 Less: Surplus of R allocated to P and Q in the ratio of 3:2 (6,000) 4,000) 10,000 Balance 84,000 46,000 - 1,30,000 Less: Unmarked applications including firm underwriting [Working Note]. (57,000) (38,000) (19,000) (1,14,000) Net Liability 27,000 8,000 (19,000) 16,000 Less: Surplus of R allocated to P and Q in the ratio of 3:2 (11,400) (7,600) 19,000 Balance 15,600 400 - 16,000 Add: Firm Undertaking 20,000 14,000 10,000 44,000 Total Liability 35,600 14,400 10,000 60,000 Working Note: Applications received from the Public 2,40,000 shares Add: Shares for firm Underwriting (20,000 + 14,000 + 10,000) 44,000 shares Total Application 2,84,000 shares Less: Marked applications (60,000 + 50,000 + 60,000) 1,70,000 shares Unmarked application including firm undertaking 1,14,000 shares