What is a rights issue, and how to define it?
A rights issue is a new share that invites existing shareholders to buy additional shares in a company. This type of issue gives existing securities called rights to their shareholders. With rights, the shareholder can purchase new shares at a certain future date at an additional discount to the market price. The company is offering shareholders an opportunity to increase their exposure to the stock at a lower price or at a discount price.
Why do companies come up with rights issues?
Companies come up with rights issues to give more profit to their existing shareholders. It helps the shareholders to get additional shares by participating in the rights issue process. The Company provides an exorbitant discount to enable the Shareholder to participate in the Rights Issue and the same will be calculated as per the Rights Issue Ratio finalized in the Offer by the Company.
An example of a rights issue offer:
Assume Reliance Jio Industries comes out with a rights issue at a price of ₹2000 against the current share price of ₹2400, which means the shareholder can get the shares at a discounted price of ₹400. The closing ratio of the company is around 1:3, which means Reliance company will offer 1 equity share against 3 equity shares held by the shareholders. So whenever you participate in the App Rights issue offer, please read the details carefully.
Upcoming Rights Issue in India with Date & Price
Below is the list of companies that send invitations to their existing shareholders to buy additional shares at a discounted price. It’s not as we know the IPO process but it’s available only for the existing shareholders to participate in the rights issue in the given time period. Here is the list of upcoming and active rights issue companies list given below:
Upcoming Rights Issue 2025
Here is the list of recent Rights Issue 2025 offers. Stay tuned for the latest Rights Issue 2025 offers and stay invested in the primary market.
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