How to calculate no. of shares applied and no. of shares allotted under pro-rata allotment?
To find the number of shares allotted or applied first you need to know under which category the shareholder belongs to. I will take a hypothetical example to illustrate:
Lets Assume there were 30, 000 shares company wanted to issue. And it received application for 36, 000 shares. Hence it was allotted on pro-rata basis.
Mohan, applied for 1080 shares. Hence Mohan got 30000/36000x1080 = 900 shares.
Mohan was allotted 900. Hence Mohan Applied for 36000/30000x900= 1080 shares.
This follows just a basic Math idea of Cross Multiplication. If 36000 gets 30000 then 900 gets what? Or if 36000 get 30000 then how many got 900?
Hope my answer clears all your doubts. Good Luck! Cheers! :)
Lets Assume there were 30, 000 shares company wanted to issue. And it received application for 36, 000 shares. Hence it was allotted on pro-rata basis.
Mohan, applied for 1080 shares. Hence Mohan got 30000/36000x1080 = 900 shares.
Mohan was allotted 900. Hence Mohan Applied for 36000/30000x900= 1080 shares.
This follows just a basic Math idea of Cross Multiplication. If 36000 gets 30000 then 900 gets what? Or if 36000 get 30000 then how many got 900?
Hope my answer clears all your doubts. Good Luck! Cheers! :)