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 NameIssue OpenIssue CloseIssue price (Per Share)Issue Size – Shares (Cr)Issue Size – Amount (Cr)
Megasoft LimitedJul 22, 2021Aug 05, 2021102.9510
Aplab LimitedJun 17, 2021Jul 01, 2021100.55
Vikas Ecotech LimitedJun 15, 2021Jun 29, 20211.351010
Vikas Lifecare LimitedMay 27, 2021Jun 10, 20211.851010
Sundaram Finance Holdings LimitedMay 06, 2021Jun 04, 2021507.110
KDDL LimitedApr 09, 2021May 07, 20212300.1110
India Grid TrustApr 06, 2021Apr 13, 20211101010
WeP Solutions LimitedMar 24, 2021Apr 19, 2021100.999.87
Emerald Leasing Finance and Investment Company LimitedMar 22, 2021Apr 05, 202110210
Rajapalayam Mills LimitedMar 15, 2021Mar 30, 20215690.1210
Arvind Fashions LimitedMar 04, 2021Mar 18, 20211351.4810
Authum Investment & Infrastructure LimitedMar 01, 2021Mar 15, 2021810.4610
Patel Integrated Logistics LimitedFeb 26, 2021Mar 12, 2021100.959.5
L&T Finance Holdings LimitedFeb 01, 2021Feb 15, 2021651010
Urja Global LimitedJan 25, 2021Feb 10, 20215510

Note:

  • 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.

Leave a Reply

Your email address will not be published.