What is the qualifying criteria for Right Issue ?
The rights issue is not open for the general public but only to existing shareholders of the company. A company announces a record date in case of a rights issue. To be eligible to qualify as an existing shareholder for the rights issue, one must own the shares of the company as on the record date.
The shares become ex-rights one day before the record date. If you buy the shares on or after the ex-date, you will not be eligible to receive rights entitlements as you would not qualify as an existing shareholder of the company as on record date.
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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. ...
What is the difference between Floor Price and Cut-Off Price for a Book Building Issue ?
Company coming up with a Book Building Public Issue decides a price band for the issue. The price band usually contains an upper level and a lower level. Floor Price is the minimum price (lower level) at which bids can be made for an IPO. Investors ...
What are the most common types of corporate actions ?
Most common types of corporate actions are listed below: Bonus Issue Bonus shares are additional shares given to the shareholders without any extra cost based on their existing shares. When bonus shares are issued, the number of shares increases but ...
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.
How will the funds payout happen post Buyback ?
Funds pay-out for Buyback Issue will be directly credited by the Company's Registrar in the registered Bank Account of the customer which is linked with the Demat Account and not through the Broker