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This method of new issues gives pre-emptive right to the existing shareholders over such securities. 'Which method of floatation is highlighted in the given statement? Or Hari has 200 shares of Reliance Industries. Reliance comes out with a fresh issue of shares and Hari received an offer to buy 1 more share of Reliance for every two shares held by him. Discuss the type of issue described. Or Fabmart Pvt. Ltd. wants to raise ` 200 crores through issue of equity shares. Before offering the new shares to outsiders, company is required to offer them first to its existing shareholders. Which method of floating new issue is indicated in the given case?

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