From the following information, you are required to calculate the Value per Equity Share as on 1 st April, 2020 of Udhami Limited: 50,00,000 Equity Shares of ₹10 each fully paid-up. 20,00,000 Equity Shares of ₹10 each, ₹

Calculation of Value per Equity Share (Rs. in lakhs) Particulars Rs. in lakhs Expected profit before interest and tax 228 Less: interest (1,50,000 Debentures * ₹100 * 9%) (13.50) Profit before tax 214.50 Less: Tax @ 31.20% (66.924) Expected Profit available for equity shareholders 147.576 Total Equity Capital = (50,00,000 shares * ₹10) + (20,00,000 shares * ₹6) = ₹ 500 lakh + ₹ 120 lakh = ₹ 620 lakh Expected rate of return = (Expected Profit available for equity shareholders / Total Equity Capital) * 100 = (₹ 147.576 lakh / ₹ 620 lakh) * 100 = 23.80% Value per equity share = (Expected rate of return / Normal rate of return) * Paid up value Value per equity share (Fully paid up) = (23.80 / 15) * ₹ 10 = ₹ 15.87 Value per equity share (₹ 6 paid up) = (23.80 / 15) * ₹ 6 = ₹ 9.52