Question

A cement manufacturing company plans to raise ₹100 crores by offering Equity Shares to financial institutions.
Name the capital raising method considered by the cement manufacturing company.

Hint:

Equity financing involves selling shares of the company to raise funds. This method does not require repayment, but it dilutes the ownership among shareholders.

Answer 1

The cement manufacturing company is raising capital by offering equity shares to financial institutions. This method of raising capital is known as Equity Financing. In this case, the company is offering equity shares to financial institutions in exchange for capital. By doing so, the company is allowing investors to become shareholders and thus share in the ownership and future profits of the company.
Final Answer:
The capital raising method considered by the cement manufacturing company is Equity Financing.