Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Rights issue allows existing shareholders to buy additional shares at a discount to market price, proportional to their current holding.
A rights issue lets current shareholders buy more shares at a special price before outsiders — you can take it, ignore it, or sell your rights.
Renounceable rights can be traded on exchange. Proceeds fund expansion or deleveraging. Non-participation dilutes ownership. Pricing below market creates theoretical value in the rights entitlement itself.
You hold 200 shares. Company offers 1:5 rights at ₹800 when market price is ₹1,000. You can buy 40 new shares for ₹32,000, or sell renounceable rights for ~₹200 per share entitlement.
Subscribe if you believe in the company and want to avoid dilution. Evaluate use of funds, discount, and your portfolio concentration.
Your ownership percentage falls as new shares issue to participating shareholders. Renounceable rights may expire worthless if not sold or exercised.
Subscription price becomes cost of acquisition for new shares. Selling renounceable rights may attract capital gains on the rights sale itself.