This is a common way for companies to raise additional funds without having to secure loans or take on debt.
A Rights Issue, dear students, is a method used by companies to raise capital by offering their current shareholders the chance to purchase more shares at a discounted price. This offer is typically valid for a limited time, and the number of shares allocated to each shareholder is determined proportionally. It allows companies to generate funds without incurring debt or seeking loans, making it a popular option in the financial world.