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Ipo

Accountancy

Does autorised share capital include both offer for sale and fresh issue during IPO.

Shreesha .T.u

CA Foundation

★ 2K+

04-Dec-20 13:27

533

Answers (4)

Best Answer

Offer for sales shares are held by promoters ( i.e already subscribed and paid up by them) . so such shares are already part of authorised capital. For fresh issue, you have to increase the auth captal

Sriram Somayajula

Admin

04-Dec-20 13:57

Sriram Somayajula Admin

Mam pls explain again or tell in simple terms.

Thread Starter

Shreesha .T.u

CA Foundation

★ 2K+

04-Dec-20 18:13

Authorised capital is the maximum capital which can be raised. Whether through OFS or IPO or Bonus or rights.

CA Suraj Lakhotia

Admin

04-Dec-20 18:25

Thank you sir... Even I got the concept cleared.

Aditya A.D

CA Foundation

★ 10K+

23-Mar-21 20:09

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