How many primary shares are proposed to be issued in the ipo

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Question - Lifescience Digitronics Ltd, an existing profit-making unlisted company in the medical diagnostics and analytics industry, proposes to come out with a book-built IPO of equity shares. Based on consultation with the BRLM, the following proposed plan has been worked out -The Floor Price for the IPO has been fixed at Rs. 240 per share.

The company's growth plan requires a total financing of Rs. 2880 crore at a DER of 2:1. The entire equity component is proposed to be raised through the IPO.

Existing PE investors wish to exit the company partially to the extent of 50% of their current holdings.

The pre-issue Cap Table shows an issued capital of 2 crore shares of Rs. 10 each. Out of the tolal shares, 60% is held by the Promoters and the rest by the PE investors.

Based on the above information, identify the correct answer to the following questions from the alternative answers provided for each of them.

How many primary shares are proposed to be issued in the IPO?

Reference no: EM133101258

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