Sunday, January 22, 2023

Methods of Raising share capital

 An existing company has three methods for expanding its share capital. 

1. First is through a fresh issue of shares to existing shareholders in proportion to shares held by them---        Right issue or Bonus issue

2. Second is by making an open offer, inviting the public in general to subscribe the shares---IPO

3. The third method is by making a bulk allotment to individuals, companies, venture capitalists or any          other person through a fresh issue----  Private placement 

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