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Explain minimum subscription.
Minimum subscription is the term which is used to represent the amount of the issue which has to be subscribed or else the shares can't be issued if it is not being subscribed. Company which is offering the shares to the public then they set a specific amount for the subscription which can be taken by the public in order to issue the shares.
What is the minimum subscription required for a company to utilize funds?
The minimum subscription which is required for a company to utilize funds as follows:-
1. Infrastructure company won't have to have the requirement of 25% of its securities as public offer.
2. If the infrastructure company offers the requirement for the shareholders in that case Rs. 1 lakh can be waive off.
3. Infrastructure companies which are having public issues for them minimum subscription of 90% is not necessary and it should be given by the alternate source through that fund is coming to the company.
4. Infrastructure company can keep the issue open for 21 days only which would give the sufficient amount of time to get the funds for their issues.
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