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Rajan Automobiles, a 50 years old company, is witnessing a boom in the recent years due to growth in the Indian economy. The income of middle class is rising. More people can afford to buy vehicles. In order to expand its business, the company now decides to go public. (i) List out any three methods by which the company can do so. (ii) Also, identify one dimension of business environment discussed here. |
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Answer» The company can go public by issuing securities in the primary markets by the following methods: (a) Offer through prospectus Under this method, the company issues a prospectus to inform and invite the public to subscribe to its shares. (b) Offer for sale Under this method, new securities are offered to general public through an intermediary, who buys the whole lot of securities from the company and then sell it to the public. (c) e-IPOS It is the method of issuing securities through an online system of stock exchange, with the help of SEBI registered brokers. (ii) The dimension of business environment affected here is economic environment, as the income of the people is rising |
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