What is amount to be charged from the applicant of Bid 1 and 3 ?
CS Professional · Capital Commodity and Money Market · PYQS · June 2019
What is amount to be charged from the applicant of Bid 1 and 3 ?
Answer & Explanation:
Amount to be Charged from Applicants of Bid 1 and 3: The final issue price is ₹300 per share. For Applicant of Bid 1: Shares allotted to Bid 1 = 154 shares (as per the allotment table in 2(a)(ii)(A)) Amount to be charged = 154 shares * ₹300/share = ₹46,200 For Applicant of Bid 3: Shares allotted to Bid 3 = 76 shares (as per the allotment table in 2(a)(ii)(A)) Amount to be charged = 76 shares * ₹300/share = ₹22,800 Refunds (if applicable, based on initial bid amount): The question asks for the amount to be charged, which is based on the final issue price and allotted shares. However, the solution also mentions refunds, which implies that the initial bid amounts were higher than the final amount due. Bid 1: Bid 250 shares @ ₹360. Initial amount blocked = 250 * ₹360 = ₹90,000. Amount charged = ₹46,200. Refund to Bid 1 = ₹90,000 - ₹46,200 = ₹43,800. Bid 3: Bid 100 shares @ ₹350. Initial amount blocked = 100 * ₹350 = ₹35,000. Amount charged = ₹22,800. Refund to Bid 3 = ₹35,000 - ₹22,800 = ₹12,200. So, the amounts charged are ₹46,200 from Bid 1 and ₹22,800 from Bid 3. The respective refunds would also be processed.
Topics: Capital Market
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