Comment on The IPO Markets - Part 1

Venkatesh commented on 17 Aug 2018, 04:35 PM

I have the following doubt on the above articles:
1. It is mentioned that the promoters and the two angels contributed Rs. 5 crores in the initial stage, which was considered as Authorized capital. So it means that the company is liable to pay them Rs. 5 crores.
2. But they were allotted only shares worth Rs 2.5 crores. Which means company is liable to pay them only Rs. 2.5 crores even when they had contributed Rs. 5 crores. What is the status of balance Rs. 2.5 crores contributed by them?? Only issued capital will be paid by the company and not the Authorised capital. Can u clarify me with regard to this?

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