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Rights Issue

Companies sometimes offer rights issues to existing shareholders. This gives shareholders the chance to buy additional shares at a discount, potentially boosting their ownership. Consider subscribing if the company has strong future earnings potential and the discounted price is attractive. Investors who don't subscribe risk dilution (their ownership percentage decreases) due to more shares being issued. Existing shareholders on record at a set date are eligible. The number of additional shares you can buy is based on your current holdings. Read more
Company
Rights Ratio
Premium
Announcement
Record Date
Ex-Rights

Rights Ratio

11:6

Premium

0

Announcement

25 Oct 2024

Record Date

30 Oct 2024

Ex-Rights

30 Oct 2024

Rights Ratio

7:1

Premium

0.76

Announcement

22 Oct 2024

Record Date

28 Oct 2024

Ex-Rights

28 Oct 2024

Rights Ratio

1:3

Premium

1.75

Announcement

22 Oct 2024

Record Date

25 Oct 2024

Ex-Rights

25 Oct 2024

Rights Ratio

119:758

Premium

218

Announcement

18 Oct 2024

Record Date

25 Oct 2024

Ex-Rights

25 Oct 2024

Rights Ratio

4:1

Premium

34.95

Announcement

18 Oct 2024

Record Date

24 Oct 2024

Ex-Rights

24 Oct 2024

Rights Ratio

6:5

Premium

2.6

Announcement

17 Oct 2024

Record Date

24 Oct 2024

Ex-Rights

24 Oct 2024

Rights Ratio

1:20

Premium

130

Announcement

15 Oct 2024

Record Date

22 Oct 2024

Ex-Rights

22 Oct 2024

Rights Ratio

1:6

Premium

251

Announcement

17 Oct 2024

Record Date

19 Oct 2024

Ex-Rights

18 Oct 2024

Rights Ratio

11:5

Premium

0.5

Announcement

15 Oct 2024

Record Date

18 Oct 2024

Ex-Rights

18 Oct 2024

Rights Ratio

29:2

Premium

3

Announcement

15 Oct 2024

Record Date

18 Oct 2024

Ex-Rights

18 Oct 2024

Rights Ratio

20:41

Premium

50

Announcement

07 Oct 2024

Record Date

14 Oct 2024

Ex-Rights

14 Oct 2024

Rights Ratio

3:1

Premium

0

Announcement

07 Oct 2024

Record Date

11 Oct 2024

Ex-Rights

11 Oct 2024

Rights Ratio

5:100

Premium

45

Announcement

07 Oct 2024

Record Date

11 Oct 2024

Ex-Rights

11 Oct 2024

Rights Ratio

4:5

Premium

0.2

Announcement

04 Oct 2024

Record Date

10 Oct 2024

Ex-Rights

10 Oct 2024

Rights Ratio

1:6

Premium

49

Announcement

01 Oct 2024

Record Date

07 Oct 2024

Ex-Rights

07 Oct 2024

Rights Ratio

1:2

Premium

1

Announcement

30 Sep 2024

Record Date

03 Oct 2024

Ex-Rights

03 Oct 2024

Rights Ratio

1:3

Premium

30

Announcement

12 Sep 2024

Record Date

26 Sep 2024

Ex-Rights

26 Sep 2024

Rights Ratio

1:15

Premium

880

Announcement

24 Sep 2024

Record Date

25 Sep 2024

Ex-Rights

25 Sep 2024

Rights Ratio

9:5

Premium

5

Announcement

12 Sep 2024

Record Date

16 Sep 2024

Ex-Rights

13 Sep 2024

Rights Ratio

25:39

Premium

90

Announcement

12 Sep 2024

Record Date

18 Sep 2024

Ex-Rights

17 Sep 2024

Rights Ratio

1:3

Premium

5.06

Announcement

06 Sep 2024

Record Date

13 Sep 2024

Ex-Rights

13 Sep 2024

Rights Ratio

1:1

Premium

1.2

Announcement

09 Sep 2024

Record Date

13 Sep 2024

Ex-Rights

13 Sep 2024

Rights Ratio

14:30

Premium

1.5

Announcement

10 Sep 2024

Record Date

12 Sep 2024

Ex-Rights

12 Sep 2024

Rights Ratio

1:10

Premium

315

Announcement

09 Sep 2024

Record Date

11 Sep 2024

Ex-Rights

11 Sep 2024

Rights Ratio

2:1

Premium

7.5

Announcement

09 Sep 2024

Record Date

10 Sep 2024

Ex-Rights

10 Sep 2024

Rights Ratio

6:5

Premium

25

Announcement

03 Sep 2024

Record Date

09 Sep 2024

Ex-Rights

09 Sep 2024

Rights Ratio

8:103

Premium

8

Announcement

28 Aug 2024

Record Date

06 Sep 2024

Ex-Rights

06 Sep 2024

Rights Ratio

1:5

Premium

165

Announcement

30 Aug 2024

Record Date

04 Sep 2024

Ex-Rights

04 Sep 2024

Rights Ratio

3:2

Premium

1

Announcement

31 Aug 2024

Record Date

05 Sep 2024

Ex-Rights

05 Sep 2024

Rights Ratio

4:1

Premium

0

Announcement

27 Aug 2024

Record Date

31 Aug 2024

Ex-Rights

30 Aug 2024

Rights Ratio

1:4

Premium

6

Announcement

26 Aug 2024

Record Date

30 Aug 2024

Ex-Rights

30 Aug 2024

Rights Ratio

7:23

Premium

5

Announcement

22 Aug 2024

Record Date

28 Aug 2024

Ex-Rights

28 Aug 2024

Rights Ratio

4:1

Premium

30

Announcement

20 Aug 2024

Record Date

26 Aug 2024

Ex-Rights

26 Aug 2024

Rights Ratio

13:8

Premium

0

Announcement

19 Aug 2024

Record Date

23 Aug 2024

Ex-Rights

23 Aug 2024

Rights Ratio

3:1

Premium

13

Announcement

21 Aug 2024

Record Date

23 Aug 2024

Ex-Rights

23 Aug 2024

Rights Ratio

1:2

Premium

5

Announcement

20 Aug 2024

Record Date

22 Aug 2024

Ex-Rights

22 Aug 2024

Rights Ratio

1:1

Premium

1

Announcement

13 Aug 2024

Record Date

14 Aug 2024

Ex-Rights

14 Aug 2024

Rights Ratio

3:2

Premium

0

Announcement

09 Aug 2024

Record Date

16 Aug 2024

Ex-Rights

16 Aug 2024

Rights Ratio

10:51

Premium

3

Announcement

06 Aug 2024

Record Date

13 Aug 2024

Ex-Rights

13 Aug 2024

Rights Ratio

1:5

Premium

10.5

Announcement

26 Jul 2024

Record Date

09 Aug 2024

Ex-Rights

09 Aug 2024

Rights Ratio

9:11

Premium

22

Announcement

02 Aug 2024

Record Date

07 Aug 2024

Ex-Rights

07 Aug 2024

Rights Ratio

1:1

Premium

3

Announcement

31 Jul 2024

Record Date

02 Aug 2024

Ex-Rights

02 Aug 2024

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What Is a Rights Issue?

A rights issue is providing rights to the existing shareholders of a company. This right gives the shareholders an opportunity to buy extra shares from the company at a discounted price than buying them in the secondary market. The number of extra shares that can be bought depends on the existing shares of the shareholders.

Should You Subscribe to the Rights Issue?

There can be multiple reasons why a company announces a rights issue. They might want to raise funds to fund capital expenditure, meet working capital requirements or repay debts. Understanding the purpose of the issue and how they will utilise the funds will help you determine whether to subscribe to the rights issue or not.

As an investor, you should look for two factors to understand whether you can subscribe to the issue or not:

  1. For whatever purpose the company is raising money, it should have strong earning potential in the future.
  2. The offer price of the rights issue is less or equal to the intrinsic value of the share.

Now, as an investor, there are a few options that you can choose from if you are holding shares in a company that has come up with rights issues.

  • You can utilise your rights and subscribe to the offer.
  • You can deny the rights and not subscribe to the offer.
  • You can opt for ‘right entitlement’, where you sell your rights (to subscribe to the new shares) to someone else.

FAQs

What are the benefits of the rights issue?

For an investor, when you apply for the issue, you get new shares at a discounted price. For the company, they can raise money without incurring underwriting expenses and advertising costs.

What are the risks of rights issues for an investor?

If you don’t subscribe to the offer, your stake will be diluted because of the increased number of shares.

Who is eligible for the rights issue?

The existing shareholders can apply for the rights issue. The company offers rights issues to the existing shareholders on the company’s records as of the cut-off date, which is popularly known as a record date. The company fixes this record date.

How many shares can I apply for in the rights issues?

The number of extra shares that can be bought depends on the existing shares of the shareholders. For example, you hold 100 shares in a company and if the company offers 20 shares for every 100 shares held at a discounted price of ₹20 per share. Then, you will get 20 shares at ₹20 per share.

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