Question

Meca Ltd. a reputed automobile manufacturer needs Rupees ten crores as additional capital to expand its business. Atul Jalan, the CEO of the company wanted to raise funds through equity. On the other hand the Finance Manager, Nimi Sandev said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allow the securities to institutional investors. Name the method through which the company decided to raise additional capital.

Answer 1

Private placement method is used by the company to raise additional capital.