Zocon Ltd. issued a prospectus inviting applications for 5,00,000 equity shares of ₹10 each issued at a premium of 10% payable as:
₹3 on Application
₹5 on Allotment (including premium)
and ₹3 on call.
Applications were received for 6,60,000 shares.
Allotment was made as follows:
(a) Applicants of 4,00,000 shares were allotted in full.
(b) Applicants of 2,00,000 shares were allotted 50% on pro rata basis.
(c) Applicants of 60,000 shares were issued letters of regret.
A shareholder to whom 500 shares were allotted under category (a) paid full amount on shares allotted to him along with allotment money.
Another shareholder to whom 1,000 shares were allotted under category (b) failed to pay the amount due on allotment. His shares were immediately forfeited.
These shares were then reissued at ₹14 per share as ₹7 paid up. Call has not yet been made.