What shall be final price for allottees of preferential issue of shares ? Explain with reasons.

Final Price for Allottees of Preferential Issue of Shares: As per SEBI pricing norms for preferential issues, if a company allots shares before the completion of 26 weeks from the date of listing and the price increases subsequently, the issue price may need to be recomputed. Initial Allotment Price: The company initially allotted shares at ₹90. Market Price Movement: After the verdict (rejection of listing application), the stock price went up, and the average of weekly high and low for 26 weeks from the date of listing went up to ₹140. Recomputation Clause: The regulations state that if the recomputed price (based on the average of weekly high and low for 26 weeks from listing) is higher than the price paid on allotment, the difference shall be paid by the allottees to the issuer. Reasoning: In this case, the average of weekly high and low for 26 weeks from the date of listing is ₹140. The shares were initially allotted at ₹90. Recomputed Price: ₹140 Allotment Price: ₹90 Difference to be collected: ₹140 - ₹90 = ₹50 per share. Therefore, the final price for the allottees of the preferential issue of shares shall be ₹140 . The allottees will have to pay an additional ₹50 per share to the company to comply with the pricing norms, as the recomputed price based on the 26-week average is higher than the initial allotment price.