Practicing Success
Based on the following case study, answer the question. Big Limited is requiring ₹1000 crores for modernisation of its existing projects. A meeting of its finance department head was called with the board of directors to decide how to manage the required funds. It was decided in the meeting that ₹200 crores will be raised immediately by giving privilege to the existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. ₹300 crores will be raised by allotting securities to institutional investors. Half of the balance required funds will be raised by a direct appeal to investors by means of a advertisement in newspapers and rest to issuing houses and stock brokers at an agreed price. |
Select the percentage of funds raised through institutional investors |
20% 30% 25% 50% |
30% |
The correct answer is option (2) : 30%
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