What is the Rights Issue of Share?
A company may issue more shares under Section 62(1) of the Companies Act of 2013 if it intends to raise its subscribed capital by a new issue of shares. By delivering a letter of offer with the following restrictions, such shares should first be made available to current shareholders who, as of the offer date, are holders of equity shares of the firm in proportion.
Of course, the goal is to guarantee that shares are distributed fairly and that the allocation of voting rights is unaffected by the issue of new shares. A rights issue occurs when a company issues shares or convertible securities to its current shareholders as of a specific date set by the issuer (i.e., the record date). In relation to the number of shares or convertible securities owned as of the record date, the rights are offered in a certain ratio.
Upcoming Rights Issue of Share List May 2024
Here is a list of Upcoming Rights Issues of May 2024. Follow the upcoming rights Issue of shares and continue to invest in the primary market:
Important Note:
- The offer to purchase a rights issue is a choice, not a requirement, for the current shareholder.
- You must be a shareholder of the company in question as of the record date to qualify as an existing shareholder for the rights issue.
- An existing shareholder who has fully subscribed to the rights issue may also subscribe for additional shares. The extra shares would be allocated depending on the issue subscription.
- Through the trading of rights entitlements, the rights issue can be partially subscribed to and partially transferred to other investors.
- In such instances, neither party will be able to purchase more shares in addition to the assigned rights issue.