Other ways to raise the fund from Market?

A company can raise funds through a rights issue. In this, the company gives shares only to existing share holders at a certain ratio to the number of shares already owned. For example, in the case of SBI, one rights share is to be given for every five SBI share owned.Normally, a rights issue has the twin purposes of rewarding the shareholders of the company and raising funds. Shares are, therefore, typically offered at a 30-50 % discount to the prevailing market price. Therefore, just before a rights issue, the share price of the company goes up.

In a rights issue, how is the entitlement of shares fixed?
In a rights issue, a cut-off date is fixed, known as the record date. Rights shares are given to those share holders who own the company’s shares on the record date. For example, in case of SBI, the record date is fixed at February 4. That means, rights shares will be given to those investors who own SBI shares on February 4. If one buys an SBI share after February 4, he will not be entitled for the rights share despite the fact that the rights share will be issued after that date. Similarly, if one sells share after February 4, he will still get the rights shares of SBI.
What is offer for sale of equity shares?
In an offer for sale, equity shares of a company are offered by large shareholders, who can be promoters also, to the public. When the Government of India divests its holdings in a public sector company, for instance, it makes an offer for sale. One famous issue of this kind was ONGC's issue of around Rs 10,000 crore, in which GoI had divested its holding in the company. In an offer for sale, the money raised goes to the seller of the stake and the company is not benefited. But, this is also treated as a public issue and follows all the rules of public offerings of shares.