RP Ltd. is planning to issue an IPO in 2019 for which a draft offer document is proposed to be filed in September, 2019. The following data is available regarding the company: 2015-16 (₹ in crore) 2016-17 (₹ in crore) 20
CS Executive · Securities Laws and Capital Markets · PYQS · December 2020
RP Ltd. is planning to issue an IPO in 2019 for which a draft offer document is proposed to be filed in September, 2019. The following data is available regarding the company: 2015-16 (₹ in crore) 2016-17 (₹ in crore) 2017-18 (₹ in crore) Net Tangible Assets 5.00 8.00 7.00 Monetary Assets 1.00 3.00 3.00 Net Worth 3.00 4.00 5.00 (ii) Will your answer be different if value of monetary assets is ₹ 4 crore in 2016-17?
Answer & Explanation:
A company can proceed for IPO, if value of monetary assets is upto 50% of the Net Tangible Assets. In case monetary assets is ₹4 crores in 2016-2017 i.e. 50% of Net Tangible Asset. Hence, RP Ltd. can still proceed for IPO.
Topics: Public Issues
Related Questions in this Topic
- With the growing use of UPI transactions in India, SEBI has also allowed in public offers to make payment for the bid, b...
- Write short notes on the following: Application Supported by Blocked Amount (ASBA)
- The facility of Application Supported by Blocked Amount (ASBA) introduced to protect the interest of investors for faste...
- A Company is planning for Initial Public Offer of its equity shares. It has decided differential pricing for retail indi...
- Who are Anchor Investors? How is allocation made to Anchor Investors?