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Incorporated in 1990, Raju diary Ltd is one of the leading Manufacturers and marketers of diarybased branded foods in India. In the initial years, its operation were restricted only to collection and distribution of milk. But, over the years it has gained a reasonable market share by offering a diverse range of diary based products including fresh milk, flavoured yogurt, ice creams, butter milk, cheese, ghee etc. In order to raise the funds for its expansion plans, Raju diary Ltd. has decided to approach capital market through a mix of offer for sale of 4 crore shares and a public issue of 2 crores shares.

In context of the above case:

(A) Name and explain the segment of capital being approached by the company

(B) Identify the methods of floatation used by the company to raise the required capital. Give one difference between them.

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(A) Primary market is the segment.

(B) The two methods of floatation is –

a. issue through prospectus and offer for sale.

b. In case of issue through prospectus, the company approaches the members directly by issuing a prospectus whereas in offer for sale through intermediaries.

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