PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ?9 each to Prosperous Bank Private Limited. The bank in turn will offer the shares to general public for subscription @ ?11 per share. Identify the method of floatation being described in the given lines.

Question

Quizplus · Accepted Answer

The method described is "Offer for sale," where shares are first sold to a financial institution (in this case, Prosperous Bank Private Limited) and then offered to the general public by the institution at a higher price.

PK Enterprises Limited Has Sold an Entire Lot of 5,00,000