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Godavari energy limited is searching options to raise ₹35000 crores from the primarymarket for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, ABC Finance Pvt. Ltd. for suggesting options for the same. ABC Finance Pvt. Ltd. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of ₹15000 crores the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. ₹5000 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of ₹8000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise ₹7,000 crores through the online system of the stock exchange by entering into an agreement with the exchange. Q.13 “₹5000 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital.’’ Identify the method of floatation of new issues in the primary market being discussed above, which the company has decided to use. a. Offer for sale b. Private placementc. Right Issue d.Offer through Prospectus​Q.14 Identify the method of floatation of new issues in the primary market, not takenup by Godavari energy pvt. Ltd..a. Offer for sale b. Rights issuec. E-IPO d. Offer through prospectusQ.15 How much money was raised by the company through E-IPO’sa.₹8000 crores b. ₹7000 croresc. ₹5,000 crores d. 35000 croresQ.16 Identify the reason which has made the firm raise funds from the institutionalinvestors.a. It helps to raise funds quickly b. It is not expensivec. Both a & b d. None of the above.

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