Upcoming Rights Issues

List of Current/Upcoming Rights Issues

Issuer Company Issue Dates Issue Price Issue Size
KDDL Limited 09 Apr 2021 - 23 Apr 2021 Rs.230 25.00
India Grid Trust 06 Apr 2021 - 13 Apr 2021 Rs.110 1283.65
WeP Solutions Limited 24 Mar 2021 - 19 Apr 2021 Rs.10 9.87
Emerald Leasing Finance and Investment Company Limited 22 Mar 2021 - 05 Apr 2021 Rs.10 20.00
Rajapalayam Mills Limited 15 Mar 2021 - 30 Mar 2021 Rs.569 69.95
Urja Global Limited 25 Dec 2020 - 10 Feb 2021 Rs.5 25.00
Pricol Limited 03 Dec 2020 - 17 Dec 2020 Rs.30 81.25

What is Rights Issue?

Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders the right, but not the obligation, to buy new shares at a discount to the current trading price. We explain how rights issues work and what they mean for the company and its shareholders.

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.

Until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares. The rights issued to a shareholder have value, thus compensating current shareholders for the future dilution of their existing shares' value. Dilution occurs because a rights offering spreads a company’s net profit over a larger number of shares. Thus, the company’s earnings per share, or EPS, decreases as the allocated earnings result in share dilution.