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Introduction

There are many ways in which a company rewards its shareholders. Some of the common ways are issuing dividends, bonus shares or even issuing right shares. A Rights Issue is a process when a company invites its existing shareholders to purchase additional shares of a company. The company generally issue these shares at a discounted price and give the shareholders a specific time window to participate in the issue.

It is important to note that a rights issue is not open to the general public. It is only available for existing shareholders, and that too in the proportion to their existing holdings.

The shares offered in the rights issue can either be fully or partly paid. It is voluntary on behalf of shareholders to participate in the rights issue as they can also opt-out of purchasing the additional shares. The rights issue can be partly transferred to other investors with trading of the rights entitlements.

IPO RIGHT ISSUE

View
Name Record Date Issue Period Premium Action
Billwin Industries Ltd Apr 29, 2024 May 13, 2024-May 20, 2024 24.0
Banas Finance Ltd Apr 26, 2024 **-** 0.0
Sobhagya Mercantile Ltd Apr 23, 2024 **-** 11.0
IIFL Finance Ltd Apr 23, 2024 Apr 30, 2024-May 14, 2024 298.0
Scanpoint Geomatics Ltd Apr 19, 2024 Apr 30, 2024-May 08, 2024 3.0
Yug Decor Ltd Apr 19, 2024 May 07, 2024-May 28, 2024 0.0
VMS Industries Ltd Apr 18, 2024 May 02, 2024-May 16, 2024 25.0
Ashapuri Gold Ornament Ltd Apr 18, 2024 **-** 4.85
Sakuma Exports Ltd Apr 15, 2024 Apr 25, 2024-May 13, 2024 24.30
AA Plus Tradelink Ltd Apr 05, 2024 Apr 22, 2024-May 06, 2024 8.0

Upcoming IPO FAQs

Rights issues benefit investors as they help them obtain additional shares of a company at a discounted rate when compared to the prevailing market price. However, one must remember to research the company’s performance before subscribing to the issue.

You can only apply for a rights issue via the ASBA (Application Supported by Blocked Amount) facility.

The company issuing the rights issue will send across a common application form to all its shareholder on the record date. Plus, the company also sends details of the rights and entitlements of the shareholder separately. The registrar of the issue also uploads the application form on its website.

If you are interested in applying and are eligible to do so, you can use the application form posted on the registrar’s website or the printed form sent by the issuer, registrars, or merchant bankers associated with the issue.

Lastly, you can also make an application in writing on a plain piece of paper.