Sunday, June 25, 2023

Are there any instruments other than shares (IPO) available for the company to raise the funds?

 Yes, the fresh issue includes equity shares, debentures or some kind of hybrid instruments. These securities may be issued in the domestic market or in the international market. In case of international market the funds are raised through ADR/GDR/FCCB/QIP route

Apart from raising fund through IPO/FPO the companies can raise fund by issue of debt in the form of Debentures. Companies also can offer Warrants as a part of their new offing. Warrant is an instrument which can be converted into equity shares at the choice of investor at a certain predetermined price and quantity at a specified time in the future. There is no obligation involved on the buyer in case of warrant




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