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NRI

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
Vistar Amar Ltd Dec 06, 2024 Dec 13, 2024-Dec 20, 2024 107.0
Sikko Industries Ltd Dec 06, 2024 **-** 88.0
Ace Software Exports Ltd Dec 05, 2024 **-** 68.0
Gujarat Natural Resources Ltd Dec 03, 2024 Dec 12, 2024-Dec 20, 2024 0.0
Moongipa Capital Finance Ltd Dec 03, 2024 Dec 12, 2024-Dec 27, 2024 15.0
Viceroy Hotels Ltd Nov 29, 2024 Dec 12, 2024-Dec 24, 2024 102.0
Jonjua Overseas Ltd Nov 29, 2024 Dec 13, 2024-Dec 23, 2024 0.0
LWS Knitwear Ltd Nov 28, 2024 Dec 06, 2024-Dec 16, 2024 8.0
Enbee Trade & Finance Ltd Nov 28, 2024 Dec 10, 2024-Dec 30, 2024 3.0
Scanpoint Geomatics Ltd Nov 27, 2024 Dec 05, 2024-Dec 13, 2024 4.0

IPO Right Issue 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.