Private placement - In this approach, the securities are sold only to some selected persons and big institutional investors rather than to the general public. In this, corporations either allot the securities themselves or sell them to intermediaries who, in turn, sell these securities to selected clients.
Right Issue - In this method, existing shareholders are offered a subscription of new equity shares of the company in proportion to the number of shares possessed by them. As per the Companies Act, 2013, existing shareholders are given the right/privilege to buy new equity shares of the same class.