Question

New Company promoted by persons without any track record can issue shares at ________.

• A. $10$% premium
• B. book building process
• C. par
• D. any premium

Answer 1

The correct option is C par

Issue at par means the face value and the market value is the same. A company may not have a good market value as it is new company, the market value can be lower then the face value also so the company can issue shares at par because discount on issue of shares is not permitted by the companies act 2013.