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प्रश्न
Sai 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
- Sai 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.
- The 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.
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संबंधित प्रश्न
___________ is offered to existing equity shareholders.
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 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.
Find the odd one.
Answer in one sentence.
What is meant by private placement?
Answer in one sentence.
To whom is Sweat Equity Shares offered by a company?
Answer in one sentence.
Name the method under which the issue price of shares is fixed through a bidding process.
Explain the following term/concept.
Employees Stock Option Scheme
Explain the following term/concept.
Minimum subscription
Explain the following term/concept.
Initial Public Offer
Write a word or a term or a phrase which can substitute the following statements.
Highest bid price in Book Building method.
What is Employee Stock Purchase scheme?
Explain provisions that the company must fulfil.
Explain Pricing methods to offer shares to the public.
Give one word or phrase for the following sentence:
Full form of SARS.
______ is the process of offering shares to the general public.
Explain the following term/concept:
Bonus shares
