ABC Ltd. was incorporated in May 2010. It came out with its initial public offer (IPO) in January 2017 and the shares were issued at a premium of ₹ 225 per equity shares. The face value of share is ₹ 10 per equity share.

An issue of share on preferential basis to Qualified Institutional Buyer (QIB) not exceeding five in numbers will be made at a price not less than the average of the weekly high and low of the closing prices of the related shares quoted on a stock exchange during the two weeks preceding the relevant date. In the given case, the meeting of the shareholders was held on 30.8.2017 and the relevant date is 30 days prior to the date of such meeting. By this date the listing of shares has not been completed 26 weeks hence provision (II) above shall be applied. Thus according to this, the price of the preferential issue for allotment to (Qualified Institutional Buyer) QIBs shall not be less than higher of the following: Criteria Value The price at which shares were issued by the company in its IPO Shares were issued at a premium of ₹ 225 i.e. total price of the Equity shares was ₹ 235/- The average of the weekly high and low of the closing prices of the related shares quoted on the stock exchange during the period shares have been listed preceding the relevant date ₹ 230.22 The average of the weekly high and low of the closing prices of the related shares on a stock exchange during the two weeks preceding the relevant date ₹ 288 Among all the three options the highest is ₹ 288/- Hence the preferential issue price for QIBs shall be ₹ 288/-