Top 4 IAPM Initial Public Offer Questions You Need To Solve


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INITIAL PUBLIC OFFER

 

Illustration 1

Oberoi Reality Ltd. IPO of 4 crore shares opened on 6th Oct. 2010 and closed on 8th Oct. 2010. Price band 400 – 410. Face Value  10.

 

The details of Application Received

Price                No. of Shares (crores)             Price                No. Of Shares

400                              2                                  406                              1

401                              2                                  407                              1

402                              4                                  408                              2

403                              5                                  409                              3

404                              1                                  410                              2

405                              2

 

The company Issue Price is  405. Allotment done on 20th Oct.

Pass Journal Entries

 

Illustration 2

 Show balance sheet effect of problem no.1

 

Illustration 3

 Coal India Ltd. IPO opened on 6th October & closed on 8th October – Company issued 20 crore shares in the price band 1200 – 1300. Public applied for 200 crore shares. The BRLM  J.P.Morgan in consultation with company announced issue price  1250. Average Price of application receive is  1270. Pass necessary journal entries in books of Coal India Ltd. Refund & Allotment of shares was done on 20th Oct. 2010. Face value  10

Illustration 4

 Engineers India Ltd. current market price on 1st Oct. is  1000. FPO of Shares of face value  10 is announced at a fixed price of  900. The issue for 10 crore shares opened on 8th Oct. and by the time is closed on 10th Oct. The company received application for 100 crores shares. Allotment was done on proportionate basis & excess money refunded on 20th Oct. 2010. Pass necessary journal entries in books of EIL.

 

For Solution/ Answer Please refer IAPM Textbook By Author Pawan Jhabak, Himalaya Publication.

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