Any public company like Eskom that has authorized capital of more than what it has actually raised, it is allowed to raise extra capital for the purpose of expansion of its business activities or verticals.
Raising capital can be referred to or considered as a method of transferring a part of business ownership in exchange for capital. It may be done by any company that is not unauthorized to do so. Companies like Eskom may raise capital for business expansion activities.
Therefore, the significance regarding raising capital has been aforementioned.
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