Answer to Question #242230 in Marketing for Kajal

Question

Alex Technologies Pvt. Ltd. is one of the top players dealing in software products and 

solutions in India. The company now intends to launch a range of computer accessories 

and plans to market it by opening its own retail outlets. So, the board of directors of the 

company is planning to raise fresh capital by issuing shares in the primary market.

In context of the above case, you are required to help the board of directors with various 

techniques of issuing shares in the primary market to raise fresh capital for the required 

purpose.

Answer 1

The board of directors of Alex Technologies Pvt. Ltd. should perform a public issue to obtain fresh money for the needed purpose by issuing shares in the primary market. The most popular method of distributing securities to the general public is through this method. Alex Technologies Pvt. Ltd. will be able to raise cash through an initial public offering (IPO). For trading reasons, the securities will be listed on a stock exchange. Furthermore, the corporation will be able to determine the basis of allotment and will not be reliant on any mechanism, such as pro-rata or anything else.