MBR Problems.2.BB

MBR Problems.2.BB - 1Q2 Z Ltd(ZL wants to raise an equity...

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1Q2. Z Ltd (ZL) wants to raise an equity capital of Rs.110 crore. It wants to raise the maximum possible amount through the book building process. The promoters do not intend to invest more than the minimum requirement. The following bids are received from the investors:- Price (Rs.) No. of shares applied 52.00 101,03,000 53.00 85,90,400 54.50 72,11,300 55.25 58,97,600 57.00 41,83,700 58.00 36,55,300 59.00 17,99,400 60.00 8,32,200 61.00 5,00,100 62.00 1,75,700 63.00 82,800 64.00 25,500 a. Compute the amount of capital that 1. Can be raised through book building 2. Can be raised through Fixed Public Offer 3. The promoters have to bring in b. Based on the above information, compute the allotment of shares by the book building process and the cut off rate c. Within the book building process, is there any need to reserve any share for small investors? Answer for Qn. 2: a. Amount to be raised by ZL = Rs.110 crore. As per SEBI guidelines, the promoters’ contribution shall not be less than 20% of the post-issue capital. It is given that the promoters don’t intend to invest more than the minimum requirement.
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