8 capital
structure by retiring debt, it raises equity capital through afresh issue of capital in a follow-on public offer. A follow-on public offer may also
be through an offer for sale, which usually happens when it is necessary to increase the public shareholding in the company to meet the regulatory requirements.
Private Placement It refers to issuing large quantity of shares to a select set of investors. According to Companies Act 2013, the number of investors to whom shares are issued under private placement should not exceed fifty. Private placements can be in the form of qualified institutional placements (QIP) or preferential allotment.
Terminologies: 1. Alternate minimum tax It minimum tax that is leviable alternative to normal tax. Rate of AMT is 18.5% (plus applicable surcharge and cess).
2.
Depreciation/ Amortization Depreciation is the practice of spreading a Tangible fixed assets cost over its useful life. It also reflects the deterioration aspect of the fixed asset overtime. Amortization is the practice of spreading an intangible asset's cost over that asset's useful life.
3.
Alpha: It represents the performance of a security over an benchmark (Market indices. It is basically the excess returns earned on an investment
above the benchmark return 4.
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