"Mission Coach" is a large creditworthy company manufacturing coaches for Indian Railways. It now wants to export these coaches to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expense of floatation cost, the company decides to tap the money market.
(i) Name and explain the money market instrument the company can use for the above purpose.
(ii) What is the duration for which the company can get funds through the instrument?
(iii) State any other purpose for which this instrument can be used.
Sike Ltd., a reputed industrial machines manufacturer, needs rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, Chief Executive Officer (CEO) of the company, wants to raise funds through equity. The Finance Manager, Mr. Narinder Singh, suggested that the shares may be sold to the public through intermediaries, as the same will be less expensive. Name the method through which the company decided to raise additional capital.