2021 Rights Issues
A rights issue invites existing shareholders to purchase additional shares of the company at a discounted price within a specific period. In contrast to an IPO, a rights issue is not offered to the general public, but only to existing shareholders proportionate to their holdings.
It is possible for eligible shareholders either to subscribe for the rights issue partially or fully; or to let the rights lapse by refusing to exercise their right to purchase additional shares; or to transfer their rights entitlements to others. The renunciation of rights can be accomplished by the trading of rights entitlements on a stock exchange similar to the trading of equity shares.
An eligible shareholder can benefit from a rights issue by acquiring additional shares at a premium over the market price. In contrast to bonus shares, the rights issue comes with a price, so one should study the company’s performance before subscribing.
2021 Rights Issues List:
|Company Name||Issue Open||Issue Close||Issue price (Per Share)||Issue Size – Shares (Cr)||Issue Size – Amount (Cr)|
|Megasoft Limited||Jul 22, 2021||Aug 05, 2021||10||2.95||10|
|Aplab Limited||Jun 17, 2021||Jul 01, 2021||10||0.5||5|
|Vikas Ecotech Limited||Jun 15, 2021||Jun 29, 2021||1.35||10||10|
|Vikas Lifecare Limited||May 27, 2021||Jun 10, 2021||1.85||10||10|
|Sundaram Finance Holdings Limited||May 06, 2021||Jun 04, 2021||50||7.1||10|
|KDDL Limited||Apr 09, 2021||May 07, 2021||230||0.11||10|
|India Grid Trust||Apr 06, 2021||Apr 13, 2021||110||10||10|
|WeP Solutions Limited||Mar 24, 2021||Apr 19, 2021||10||0.99||9.87|
|Emerald Leasing Finance and Investment Company Limited||Mar 22, 2021||Apr 05, 2021||10||2||10|
|Rajapalayam Mills Limited||Mar 15, 2021||Mar 30, 2021||569||0.12||10|
|Arvind Fashions Limited||Mar 04, 2021||Mar 18, 2021||135||1.48||10|
|Authum Investment & Infrastructure Limited||Mar 01, 2021||Mar 15, 2021||81||0.46||10|
|Patel Integrated Logistics Limited||Feb 26, 2021||Mar 12, 2021||10||0.95||9.5|
|L&T Finance Holdings Limited||Feb 01, 2021||Feb 15, 2021||65||10||10|
|Urja Global Limited||Jan 25, 2021||Feb 10, 2021||5||5||10|
- The offer to buy a rights issue is an option for the existing shareholder, not an obligation.
- In order to qualify as an existing shareholder, one must be a shareholder of the company on the record date.
- Shareholders who subscribe to the rights issue in full may also subscribe for additional shares. The additional shares will be allocated based on the issue subscription.
- By trading the rights entitlements, the rights issue can be partially subscribed and partly transferred to other investors. As a result, neither party will have the option of purchasing additional shares over and above those issued under the allocated rights issue.
- To differentiate rights entitlements (RE) from normal equity shares traded on the market, they are assigned a different ISIN.
- Prior to a rights issue, RE trading closes a few days prior.