What is Right Issue ?

What is Right Issue ?

A Public Company that wants to raise capital can opt for a Public Issue or a Rights Issue. In a Rights Issue, existing shareholders have the right to buy a specified number of new shares of the firm at a specified price within a specified time. Usually, this price is below market price. The idea is to reward existing shareholders with an investment opportunity.

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      The rights issue is not open for public but only for existing shareholders of the Company. A Company announces a Record Date in case of a Rights issue. To be eligible for qualifying as an existing shareholder for the rights issue, one must own the ...

    • What are the most common types of corporate actions ?

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    • What happens if I do not subscribe to my rights ?

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    • Can I revise or cancel my IPO application ?

      If the bid amount is not blocked in that case only, the customer can cancel or modify a bid if the issue is still open for subscription.