PK Enterprises Limited has sold an entire lot of 5 00 000 equity shares Rs9 each to Prosperous Bank ...........

PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ Rs9 each to Prosperous Bank Private Limited. The bank intum will offer the shares to general public for subscription @ Rs11 per share. Identify the method of floatation being described in the given lines.

Private placement

Offer through prospectus

Offer for sale

Rights issue

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Explanation:

- Private placement: Shares are sold directly to a select group of investors, usually institutional, without a public offering.

- Offer through prospectus: Shares are offered to the public using a detailed prospectus. This is a direct public offer and usually involves regulatory compliance and disclosures.

- Offer for sale: ?? Shares, initially acquired by an intermediary (like a bank), are subsequently offered to the public. This method involves the bank as a middleman between the original company and the general public.

- Rights issue: Shares are offered to existing shareholders at a discount, allowing them to maintain their ownership proportion.