Question:

Answer the question on the basis of the following passage:
Adhunik Ltd is a consumer goods manufacturing unit running the business for the last 11 years. The C.E.O Mr. Aman wants to raise capital with an objective to modernise the existing plant. For this he has made a plan to offer equity and preference shares in the primary market. He uses a combination of methods. He got the prospectus printed, so as to make a direct appeal to investors. Also he has invited offers from some brokers to buy shares at an enbloc value. Since Mr. Aman has a great circle of friends who are institutional investors, he can soon gather capital. Another method that he wants to use is the online system of stock exchange.
"Another method he wants to use is the online system of stock exchange."
Identify the method of floatation used in these lines.

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An "Offer through prospectus" involves issuing a detailed document outlining the terms of the offer, financial information, and other essential details to the public for share offerings.
Updated On: Apr 24, 2025
  • Private placement
  • Offer through prospectus
  • E-IPO
  • Offer for sale
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The Correct Option is B

Solution and Explanation

The method described in the passage, where a company prints a prospectus to make a direct appeal to investors, is known as "Offer through prospectus." This method involves making a public offering of shares, which is described in the passage.
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