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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
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.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
State whether the following statement is true or false.
Bonus Shares are issued at a discounted price to the Equity shareholders.
Find the odd one.
Answer in one sentence.
Name the capital which is mentioned in the capital clause of Memorandum of Association.
Correct the underlined word and rewrite the following sentence.
Bonus shares are offered to existing employees of a company.
Explain the following term/concept.
Initial Public Offer
Explain the following term/concept.
Private placement
Initial Public Offer and Further Public Offer
Answer in brief.
State the provisions related to Bonus Shares.
Explain Employee Stock Option Scheme.
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 |
Write a word or a term or a phrase which can substitute the following statements.
Highest bid price in Book Building method.
Give one word or phrase for the following sentence:
Process of offering shares of the company to the public for the first time.
What is Employee Stock Purchase scheme?
Give one word or phrase for the following sentence:
Full form of SARS.
______ is the process of offering shares to the general public.
