The most confusing area for students — cracked with a 5-step method.
When the LIC IPO opened, lakhs of investors applied. The issue was over-subscribed — there were more applicants than shares. The company couldn’t refuse anyone, so it allotted shares in proportion. That’s pro-rata. The catch: the extra application money is NOT refunded — it is adjusted against the next installment (allotment).
Practical sums
Swathika B is an MBA graduate in Finance & Business Analytics , the founder of The Commerce Lab. With a strong academic foundation in B.Com BFSI and hands-on experience in financial analysis, data analytics, and business studies, she created this platform to make Commerce and Accountancy simple, practical, and exam-ready for students across India.