1. The document discusses various methods used by companies to raise funds, including initial public offerings, further public offerings, private placements, rights issues, bonus issues, sweat equity shares, and employee stock option plans. 2. It provides details on the processes for initial public offerings and further public offerings, including appointing a merchant banker, filing with SEBI, preparing documents, pricing, and listing. 3. Private placements allow companies to raise funds from a select group of investors with reduced legal compliance compared to public offerings. They are suitable for start-ups and small private companies.

1. SIES COLLEGE OF COMMERCE, NERUL
Sri Chandrasekarendra Saraswati Vidyapuram Plot I – C, Sector V, Nerul.
Subject: Financial Markets Operation.
A project on
“METHODS OF ISSUING SECURITIES IN COMPANY TO RAISE FUNDS.”
Under guidance of
Rajlakshmi Ma’am.
Note:
- All external data & images used for educational project purpose only
- We don’t claim any right on any third party image & data.

2. TOPIC NAME ROLL No.
1. Introduction Pooja S. Moolya A48
2. What is Initial & Further Public Offer ? Yashika Y Hegde A21
3. Types of Prospectus Bhavya Verma A07
4. Why public offer of securities to be in Dematerialised form? Simran Kamble A30
5. How to deal with stock exchange while public offering? Nethra Nair A61
6. What about Allotment of securities by company? Geetanjali Londhe A17
7. Process of Private placement. Sanskruti Kadam A28
8. Recent updates on public offerings. Sarika Bhagat A05
9. Recent updates on private placement by companies. Anisha Patil B125
10. Right issue & Bonus issue. Iqra Juwale B127
11. Sweat issue & ESOS. Noorfatima Khan A35
12. Conclusion. Chintanika Rao B70

3. Initial Further
Offer / Follow on
Public Offer
Private
Placement
Sweat Equity
Shares &
ESOP
Right Issue &
Bonus Issue
1. Introduction
How does a
company
raise funds?
Source: toonclips.com Source: friendlystock.com

4. FUNDRAISING
IN A COMPANY.
Source: Moneycontrol App
Source: Moneycontrol App
Source: Moneycontrol App
Source: Moneycontrol App
Source:
bwdisrupt.businessworld.in

5. IPO FPO
INITIAL PUBLIC OFFER FOLLOW ON PUBLIC OFFER
When a company is going for a
process of getting listed on stock
exchange and publicly traded.
● TYPES OF IPO
1.FIXED PRICE ISSUE
2.BOOK BUILDING ISSUE
FPO is the follow up to IPO as the
name suggests.
● TYPES OF FPO
1.DILUTIVE OFFERING
2.NON DILUTIVE OFFERING
2. What is Initial & Further Public Offer ?

6. Process of IPO & FPO
APPOINT A MERCHANT
BANKER
FILING THE
APPLICATION WITH SEBI
PREPARE DRHP
MARKET THE IPO
FIXING THE PRICE BAND
AND BOOK BUILDING
LISTING DAYS
EXAMPLE OF IPO AND FPO:
Source: Thehindu.com
Source : Economictimes

7. 3. Types of Prospectus.
❖ Meaning
❖ Essentials:
1. Invite subscription
1. Made to public
1. Made by the company
1. Should be related to securities

8. Prospectus can be classified into 4 types:
1. Abridged Prospectus
2. Shelf Prospectus
3. Red Herring Prospectus
4. Deemed Prospectus

9. DEFINITION :
Dematerialization (DEMAT) :
● Demat is the move from physical certificates to electronic bookkeeping.
● DEMAT accounts are required by some trading institutions due to the fact they are the most accurate form of record
keeping.
● Dematerialization was designed to offer more security, as well as increased speed, to financial trades.
Importance of Dematerialization in IPO
4. Why public offer of securities to be in
Dematerialised form?

10. Dematerialization of public offer of securities under the Companies Act, 2013
Section 29(1) :
● Every Company making public offer , Such other class or classes of company as prescribed, shall issue
securities in the demat only.
As per rule 9A of the Companies (Prospectus and Allotment of Securities) Rule 2014 :
● Such other class of company includes the, Promoter of every public company making a public offer of any
convertible securities may hold such securities only in the demat form .
As per Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014 :
All and every Unlisted public Company shall -
● Issue securities in only demat form .
● Convert all of its existing securities in demat form, in accordance with the provision of Depositories Act,
2019 .

11. Source :Pt.slideshare.net

12. A stock exchange facilitates stock brokers to trade company stocks
and other securities.
Registration is the process by which a company files required
documents with the Securities and Exchange Commission
(SEC), detailing the particulars of a proposed public offering.
5.Stock Exchange and Process to Register

13. How to deal with Stock Exchange while
public offering?
Companies typically go public to raise huge amount of capital in exchange for securities. Once a private
company is convinced about the need to become a public company, it kick-starts the process of IPO.
Companies which want to go public follow a process that exchanges adhere to. The IPO process is quite
complicated. IPO process is regulated by the ‘Securities and Exchange Board of India (SEBI)’. This is to
check the likelihood of a scam and protect investor interest.
● Filing of an application with recognised stock exchange.
● Prospectus to state name of stock exchange.
● Money received should be kept in a scheduled bank.

14. Allotment of Securities is the issue of new shares by a
company to the original or existing shareholders. The public
generally gets confused between the issue of shares and
Allotment of shares.
6. WHAT ABOUT ALLOTMENT OF SECURITIES BY COMPANY
Source: Corpbiz
Source: Corpbiz

15. Source: HSC

16. 7. Process of Private placement
Fund raising
through different
sources
Offer to
Specified group
of persons
No public
announcement
No offer to
general public

17. No
prospectus
but private
placement
offer
document in
Form-PAS 4
Reduced
legal
compliances
Fund raising at
reduced cost
Suitable for
start-ups and
small private
companies

18. Hold board meeting
⬇️
Hold general meeting
⬇️
File FORM MGT 14
⬇️
Circulate the offer letter ( PAS-4 )
⬇️
Receive the application money
⬇️
Allotment of securities
⬇️
File return of allotment
⬇️
Utilisation of the amount
⬇️
Other incidental matters
PROCESS

19. ● A public offering is the sale of equity shares or other financial
instruments to the public in order to raise capital.
8.RECENT UPDATES ON PUBLIC OFFERING
Source : Moneycontrol App

20. UPDATES
Source : Moneycontrol App

21. 9. Recent Updates On Private Placement By Companies
● A Private Placement is a sale of securities to a Preselected number of
individuals and institutions.
● Private Placements are relatively unregulated compared to sales of the
securities on the open market.
Meaning
Source : Economictimes

22. Source : Economictimes
Source : Economictimes
Source : Economictimes
Source : Economictimes
Source: Steemit Pinterest

23. 10.Right Issue
● Meaning.
● How It Works?
● Why Company Issue Right
Shares?
● Effect On Company.
● Advantage.
● Disadvantage.
Source: slideshare.net
Source: Indiatimes.com

24. Recent Right Issues

25. Bonus Issue
● Meaning.
● Understanding Bonus Issue.
● Why Company Issue Bonus
Shares?
● Advantage.
● Disadvantage.
Source: slideshare.net
Source: Equity2commodity.in

26. Recent Bonus Issues

27. SWEAT ISSUE
FEATURES:
● Authorised in special resolution
● One year of completion
● Price, number, class, consideration (if
any) must be specified
● Register in recognized stock
exchange
Meaning Source: medium.com

28. MEANING
Source: slideshare.net

29. OBJECTIVES OF ESOS
.
Source : slideshare.net

30. CONCLUSION
Sources of
raising funds
IPO/FPO PRIVATE
PLACEMENT
RIGHTS
ISSUE
BONUS
ISSUE
SWEAT
ISSUE &
ESOS
Once the mode through which funds are to be raised is decided, the next step
is to determine the process of fund raising as explained in the topics:
➡️ Issue of prospectus
➡️ Stock exchange and process to register
➡️ Allotment of securities by company
➡️Dematerialization of public offer of securities