1. Public Issue of Shares

• A Public Limited Company can raise funds by offering shares to the general public.
  
• This is done through an Initial Public Offering (IPO) or Follow-on Public Offering (FPO).
  
• After the IPO, shares are listed and traded on stock exchanges.
  
• It allows the company to collect large amounts of capital from retail and institutional investors.
  
• The process is regulated by SEBI and involves detailed disclosures.
  

2. Private Placement

• The company can issue shares to a select group of investors through private placement.
  
• This includes high-net-worth individuals, venture capitalists, or institutional buyers.
  
• It is quicker and less expensive than a public issue.
  
• Requires approval by shareholders through a special resolution.
  
• Allotment must follow SEBI’s prescribed norms and pricing guidelines.
  

3. Rights Issue

• Existing shareholders are offered the right to purchase additional shares at a fixed price.
  
• It maintains proportional ownership for current investors.
  
• Used to raise capital without diluting control significantly.
  
• Requires issuing a letter of offer and filing with the Registrar of Companies.
  
• Rights shares may or may not be traded depending on the company’s decision.
  

4. Bonus Shares and Stock Split

• Though not a direct fundraising method, issuing bonus shares improves liquidity.
  
• A stock split reduces the face value of shares and increases the number of shares.
  
• These measures make shares more affordable and attractive to small investors.
  
• While it doesn’t raise capital immediately, it improves investor participation.
  
• Can be followed by other capital-raising strategies.
  

5. Debentures and Bonds

• Public Limited Companies can raise funds by issuing debentures, bonds, or convertible securities.
  
• These are borrowed funds with fixed interest rates, payable to investors.
  
• Convertible debentures can later be converted into shares.
  
• Debenture issues must comply with SEBI and the Companies Act provisions.
  
• They are suitable for raising large capital without giving up equity.