What is the primary purpose of a company going public through an Initial Public Offering (IPO)?

To distribute profits among existing shareholders To raise capital for expansion or cash out early investors To comply with government regulations on public disclosure To increase executive compensation packages

In a Rights Issue, what is the typical price of the new shares offered to existing shareholders?

At a premium compared to the current market price At the same price as the current market price At a discount compared to the current market price The price is determined through an auction process

Which of the following accurately describes the main distinction between an Offer for Sale (OFS) and a Follow-on Public Offer (FPO)?

OFS involves existing shares, while FPO creates new shares OFS is restricted to existing shareholders, while FPO is open to the public OFS has a shorter approval process than FPO All of the above

What is a key factor that has led to the decline in the use of FPOs since the introduction of OFS in 2012?

The complexity of the FPO process The high cost associated with FPOs The lengthy approval process for FPOs The limited investor interest in FPOs

Which of the following is a requirement for companies to utilize the OFS route to raise funds?

A minimum market capitalization of Rs 1000 crores Approval from the Securities and Exchange Board of India (SEBI) A track record of profitability for the past three years None of the above