A Limited has sold an entire lot of 6,00,000 equity shares @ Rs 10 each to Equity Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ Rs 12 per share. Identify the method of floatation being described in the given lines.

Offer for sale

The correct answer is Option 3: Offer for sale

In an offer for sale, a company sells its entire issue of shares to an intermediary (such as a bank or financial institution) at a fixed price. The intermediary then offers these shares to the general public at a higher price.

In the given case, A Limited sold all 6,00,000 shares to Equity Bank Private Limited at ₹10 each, and the bank subsequently offered them to the public at ₹12 per share, which clearly matches the offer for sale method.