Fund Raising Tools for corporate – R Singhania & Associates

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Hello, I am Tony Forleo, A 30-Year-Old Award-Winning Angel Investor And An Optimistic Individual With The Dream Of Being An Inspiration For All.

1. Equity Financing

Companies raise funds by offering ownership in exchange for capital.

Initial Public Offering (IPO) – First-time share issue to public.
Follow-on Public Offering (FPO) – Additional shares issued after IPO.
Private Placement – Shares issued privately to select investors (HNI, institutions).
Qualified Institutional Placement (QIP) – Shares issued only to institutional investors.
Rights Issue – Shares offered to existing shareholders in proportion to their holding.
Preferential Allotment – Shares issued at a fixed price to promoters, PE funds, or other investors.
SME IPO – For small and medium enterprises on SME exchanges (NSE Emerge, BSE SME).

Borrowed funds repayable over time, often with interest.

Bank Loans & Working Capital Facilities – Cash credit, overdraft, term loans.
Debentures / Bonds – Can be secured or unsecured, listed or unlisted.
Commercial Paper (CP) – Short-term unsecured borrowing by corporates.
External Commercial Borrowings (ECB) – Borrowings from foreign lenders.
Inter-Corporate Loans – Borrowing from other corporates.
Lease Financing – Acquiring assets through leasing instead of outright purchase.

Blend of debt and equity features.

Convertible Debentures – Debt that can be converted into equity after a set period.
Warrants – Gives investors the right to buy equity shares at a future date.
Preference Shares – Carry fixed dividends, but may also be convertible into equity.
Mezzanine Financing – High-risk, high-return financing, usually with an equity conversion option.

Venture Capital (VC) / Private Equity (PE) – Common for startups and growth-stage companies.
Angel Investors – Early-stage investors providing seed funding.
Crowdfunding – Raising smaller amounts from a large number of people via online platforms.
Asset Securitization – Pooling receivables (like loans, leases) and selling them as securities.
REITs / InvITs – Real Estate Investment Trusts and Infrastructure Investment Trusts for raising project-specific funds.
Buy-Back of Debt / Refinancing – For managing liabilities more efficiently.

Startup India / Fund of Funds – For startups and innovation-driven companies.

SIDBI funding – For MSMEs.

IFC, World Bank, ADB loans – For large infrastructure projects.