Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of Securities or an offer for sale of its existing securities or both
for the first time to the public. This paves way for listing and trading of the issuer's securities.
A follow on public offering (Further Issue) is when an already listed company makes either a fresh issue of securities to the public or an offer for
sale to the public, through an offer document.
Rights Issue is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are
normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise
capital without diluting stake of its existing shareholders.
A Preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the
Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital. The issuer company
has to comply with the Companies Act and the requirements contained inthe Chapter pertaining to preferential allotment in SEBI guidelines which
inter-alia include pricing, disclosures in notice etc.