Meera Ltd. has 50,000 fully paid-up equity shares as on 31st March, 2016. The shareholding pattern of Meera Ltd. is given below : No. of Shares Shares held by founders/directors/acquirers – who can exercise control 21,00

CS Professional · Capital Commodity and Money Market · PYQS · December 2016
Meera Ltd. has 50,000 fully paid-up equity shares as on 31st March, 2016. The shareholding pattern of Meera Ltd. is given below : No. of Shares Shares held by founders/directors/acquirers – who can exercise control 21,000 Shares held by partner with controlling interest 3,000 Holding of shares through FDI 2,000 Independent public companies 4,000 Strategic stakes by corporate bodies 3,000 Cross holding by group/associate companies 1,000 Lock-in-shares which would not be sold in open market 2,000 Retail investors 13,000 Employees' welfare trust 1,000 TOTAL 50,000 You are required to compute the free float of the company and its percentage to the total equity shares based on the above facts.

Answer & Explanation:

Computation of Free Float of Meera Ltd. Free float shares are those readily available for trading in the market. This typically includes shares held by independent public companies and retail investors, excluding shares held by promoters, strategic investors, and locked-in shares. Category of Shares No. of Shares Shares held by Independent Public Corporate 4,000 shares Shares held by Retail Investors 13,000 shares Total Shares under free float category 17,000 shares Percentage of total shareholding (Free Float): (Total Shares under free float category / Total Equity Shares) x 100 (17,000 / 50,000) x 100 = 34% Therefore, the free float of Meera Ltd. is 17,000 shares , which represents 34% of the total equity shares.

Topics: Capital Market

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