What is the difference between public issue and private placement?

What is the difference between public issue and private placement?

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.