Rights issue or rights offering are shares issued by a company for its shareholders. Only existing shareholders have the right to subscribe to these shares. Right Issue is offered when a company wants to raise capital for expansion.
Upcoming Rights Issue of Shares
This section provides an updated list of the upcoming rights issue announced by the companies. The information can help investors modify their portfolio or increase their investments in particular companies.
Benefits of Rights Issue for Shareholders?
Rights Issue are offered to existing shareholders at a discounted price
Shareholders retain the control of the company since Rights Issue are only offered to existing shareholders
The value of current holdings or shares are not diluted. The perceived dip in the value of the share is compensated by offering new shares at a discounted price
It enhances company brand image and perception. This eventually helps increase the value of the existing shares and by extension the shareholder value