When an issue is not made to only a select set of people but is open to the general public and any other investor at large, it is a public issue. But if the issue is made to a select set of people, it is called private placement. As per Companies Act, 1956, an issue becomes public if it results in allotment to 50 persons or more. This means an issue can be privately placed where an
allotment is made to less than 50 persons.
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One key difference between both is that public issue is made to any interested investor but private issue is made to only selected investors. Useful differences I learned here as well. Traders can trade in more efficient manner by using mcx tips when they trade in market.
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