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प्रश्न
Study the following case/situation and express your opinion.
TRI Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :
- What should the company offer - IPO or FPO?
- Can the company offer Bonus Shares to raise its capital?
- Can the company enter into Underwriting Agreement?
उत्तर
- TRI Company Ltd. is a newly incorporated company and is issuing shares to the public for the first time. Hence, the company should offer Initial Public Offer (IPO).
- Bonus shares are fully paid shares issued free of cost to the existing equity shareholders in proportion to their shareholdings. So, the company cannot raise capital by offering bonus shares.
- Company can enter into an agreement with underwriters by paying them a commission. The underwriters assure the company to take up the unsold shares (securities) so that the company is able to raise its minimum subscription.
APPEARS IN
संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ means shares are offered to the public.
In ________, shares of a company are offered to the public for the first time.
Select the correct answer from the options given below and rewrite the statement.
Under ______, a company offers its securities to a select group of persons not exceeding 200.
Write a word or a term or a phrase which can substitute the following statement.
Offering of shares by a company to the public for the first time.
Write a word or a term or a phrase which can substitute the following statement.
Subsequent issue of shares after an IPO.
Write a word or term or phrase which can substitute the following statement.
It is also called ‘Capitalisation of Profits’.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
Answer in one sentence.
What is the subsequent issue after IPO called as?
Correct the underlined word and rewrite the following sentence.
Bonus shares are offered to existing employees of a company.
Explain the following term/concept.
Minimum subscription
Explain the following term/concept.
Rights Issue
Study the following case/situation and express your opinion.
Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.
- Authorised capital
- Subscribed capital
- Issued capital
Initial Public Offer and Further Public Offer
Distinguish between the following.
Fixed Price Issues and Book Building
Answer the following question.
Explain briefly the different types of shares offered by a company to its existing equity shareholders.
Match the pairs.
| Group A | Group B |
| a) Bond holders | 1) Deals with acquisition and use of assets |
| b) IPO | 2) Declared in Annual General Meeting |
| c) Corporate finance | 3) Any issue after first-time public offer |
| d) Final dividend | 4) Deals with acquisition and use of capital |
| e) Preference shares | 5) First-time public offer |
| 6) Fixed rate of dividend | |
| 7) Owners | |
| 8) Fluctuating rate of dividend | |
| 9) Creditors | |
| 10) Declared in board meeting |
State whether the following statement is True or False:
Bonus shares are fully paid-up shares.
______ is the process of offering shares to the general public.
Study the following case/ situation and express your opinion:
Gillete Ltd. Company's capital structure is made up of 1.00.000 equity shares having a face value of ₹ 10 each. The company has offered to the public 40.000 equity shares and out of this the public has subscribed for 30,000 equity shares. State the following:
- Authorized Share Capital
- Issued Share Capital
- Subscribed Capital
