information about private placement

[akeju]

pls, can anybody give me detail information about what private placement means

[Yusuf]

Originally Posted by akeju

pls, can anybody give me detail information about what private placement means

Private placement(PP) is a special way of selling stock of unlisted company on NSE to selected sophisticated investors. Most time, it is predicated on the need for the company to get some fund and statutory ownership structure before getting listed on the stock exchange.

Note that their activities are not regulated by SEC or NSE as they are not listed. Ordinarily, the stock is meant for sellected investors who will be formally invited by the company to invest. But what is applicable now is that people buy even though they are not invited.

Minimal/No public advertisment is employed in sales of PP.

It is riskier than IPOs and buying from the floor of NSE. But when you succeed in buying one, its juicier than IPOs and co if the stock eventually get listed on the floor of NSE.

This is all time can permit me to tell you about private placement.

I hope this give little insight to your question.