Right Issue
What happens if I do not subscribe to my rights ?
The rights issue is an offer that needs to be accepted by the shareholder. In case, a shareholder does not subscribe to his rights, the rights get lapsed i.e. the shareholder will not get any additional shares if not applied for.
What is the qualifying criteria for Right Issue ?
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 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. ...