ACQUIRING NET-DEBT-FREE AND DEBT-FREE STATUS BY PUBLIC ISSUE IN CASE OF A COMPANY: UNDERSTANDING SOME OF THE CORE PRINCIPLES OF THIS SITUATION
ACQUIRING NET-DEBT-FREE AND DEBT-FREE STATUS BY PUBLIC ISSUE IN CASE OF A COMPANY: UNDERSTANDING SOME OF THE CORE PRINCIPLES OF THIS SITUATION Dear Readers, You must be hearing the Terminologies like “Net-Debt-Free” or “Debt-Free” Status to be acquired by some Companies by Public Issues of their Shares in the Market and getting listed in the Registered and Regulated Stock Exchanges. Recently one of the Very Large and Reputed Private Companies of India in the Digital and Tele Communication Space has announced that by doing a Mega Public Issue (of about Rs 30 000 Crores) it will become Net-Debt-Free. That is a very Interesting Situation being aimed for by the Said Large Company. Their Peer Companies in the Group are known to have done that in the past. Everybody understands what does “Debt” means. In the most simple language, “Debt” means the “Loans” anyone takes to finance any operation, in case of a Company it is the Loans a company takes for financing the compan...